Here's some news - Kaz issue to go to court plus year end
FOR FURTHER INFORMATION PLEASE CONTACT:
World Wide Minerals Ltd.
Corinna J. de Beer
Director of Investor Relations
(416) 369-6084
(416) 369-6088 (FAX)
E-Mail: cdebeer@worldwideminerals.com
Website: www.worldwideminerals.com
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: WORLD WIDE MINERALS LTD.
TSE SYMBOL: WWS
MAY 13, 1998
World Wide Commences Legal Action Against Kazakhstan And
Reports 1997 Year-End Results
TORONTO, ONTARIO--World Wide Minerals Ltd. (TSE - WWS) announced
today that it had commenced a legal action against the Republic of
Kazakhstan in the United States Federal District Court in
Washington D.C. The action seeks damages in the amount of at
least US$220 million arising out of the illegal action by
Kazakhstan, in August 1997, canceling a management agreement and
purchase option relating to the TGK uranium project.
In response to a public tender call to privatize part of the
uranium industry in Kazakhstan, in October 1996, World Wide agreed
to invest in the reorganization of the TGK uranium operations in
northern Kazakhstan. In February 1997 the Company entered into a
further agreement to redevelop additional uranium mines and
deposits in southern Kazakhstan. In July 1997 the Government of
Kazakhstan apparently had a change of heart and refused to issue
requisite uranium export licenses. World Wide then discontinued
most of the operations at the TGK project to which the Government
retaliated in August 1997 by illegally canceling the management
and option agreement. The uranium resources contained in the
deposits are considerable and World Wide estimates that at least
350 million lbs. of U3O8 would have been attributable to its
interests over the life of the deposits.
Following the unilateral action by the Government, World Wide
withdrew from investment in the country and pursued enforcement of
its rights, or compensation for lost investment and business
opportunity, directly and by diplomatic efforts of the US and
Canadian Governments. Kazakhstan has acknowledged through
official channels its obligation to compensate World Wide for its
lost investment. At first, the Company accepted the apparent
efforts of Government representatives to settle the amount and
timing of repayment of the investment, which has grown with
interest to over US$25 million. Despite repeated assertions that
this action would be taken, no specific settlement offer has been
forthcoming. Accordingly, the board of directors of the Company
took the decision to commence legal action for compensation.
World Wide also reported its financial results for the year ended
December 31, 1997. The Company recorded a loss from operations of
$286,689, before provision for impairment in the carrying value of
its investment in Kazakhstan. After the provision, the Company
recorded a net loss of $30,166,135 or $0.58 per share. This
compares with a net loss of $964,329 or $0.03 per share in 1996.
Revenue aggregated $3,553,825, including $1,307,992 from sale of
uranium concentrates and investment and other income of
$$2,245,833, compared to $287,352 in 1996.
At December 31, 1997, the Company had recorded in its accounts
loans, accrued interest and management fees aggregating C$22.3
million in respect of financing and managing the TGK project. In
addition, C$7.9 million had been invested in assessing, financing
and developing the Company's strategic investment in Kazakhstan.
Although management and legal counsel are confident that the
original cost of the investment is fully recoverable, either
through legal action or settlement, in accordance with generally
accepted accounting principles the Company has been required to
take a provision for the full carrying value of the investment.
Any recovery of the investment will be recognized when realized.
The Company's 1997 Annual Report, including the audited
consolidated financial statements for the year ended December 31,
1997, will be available around May 25, 1998 when it will be mailed
to shareholders for the Annual Meeting scheduled for June 24,
1998.
World Wide is a uranium production and marketing company based in
Toronto. In addition to its activities in Kazakhstan, it is
currently reactivating the Dornod uranium mine in Mongolia. This
mine has uranium reserves and resources of at least 50 million
lbs. of U3O8 and is scheduled to commence production later in
1998, with planned production rising to 3.3 million lbs. in 2000.
The Company is also investigating possible acquisitions of
additional uranium production capacity, with particular focus on
North America, with the intention of adding at least 1.0 million
lbs. of U3O8 of production capacity. There is no intention to
engage in long-term grass roots uranium exploration.
/T/
1997 Year End Highlights
CONSOLIDATED BALANCE SHEETS
(Thousands of Canadian dollars)
December 31
-----------
1998 1997
---- ----
ASSETS
Current assets $ 20,232 $ 17,934
Property, plant and equipment 11,575 4,868
Other assets 7,888 12,798
------ ------
$ 39,695 $ 35,600
------ ------
------ ------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 30,612 $ 1,299
Long-term obligations 3,659 -
Shareholders' equity 5,424 34,301
------ ------
$ 39,695 $ 35,600
------ ------
------ ------
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands of Canadian dollars)
December 31
-----------
1998 1997
---- ----
Revenue $ 3,554 $ 287
Expenses 3,841 1,251
------ ------
Loss before provision for impairment (287) (964)
Provision for impairment (29,879) -
------ ------
Net loss for the year $(30,166) $ ( 964)
------ ------
------ ------
Weighted average net
loss per share $ (0.58) $ (0.03)
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