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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Gord Bolton who wrote (14927)	2/18/1999 1:06:00 PM
From: Gord Bolton	Respond to of 26850

**Off topic** Mesina Hi Gord, sounds like they are on the verge of bankruptcy.-THought it might be better news. Messina Diamond Corp - Messina to sell Star Diamonds shares and loans to Diamco Mining Messina Diamond Corp MSC.UShares issued 21,017,5511999-01-20 close $0.04Monday Jan 25 1999Mr. Jeremy Clarke reports Messina's subsidiaries, Becksham Corporation and Messina Investments Limited (Minvest), have entered into a letter agreement with Diamco Mining (Pty) Limited, a private South African company, to sell all of the outstanding shares of and shareholder loans owing by the company's indirect subsidiary, Star Diamonds (Pty) Limited, the owner of the Star mine. The purchase price to be paid by Diamco will be 10.6-million rand (approximately $1.7-million (U.S.)) less the amount of trade payables owing by Star as at the close of business on Jan. 29, 1999 (approximately 2.25-million rand $373,000 (U.S.)). The closing of the transaction is scheduled for Jan. 29, 1999. At the closing, 5-million rand will be paid to Minvest's South African bankers, to reduce Minvest's outstanding 11.5-million rand demand loan, and 1.2-million rand will be paid to Becksham and Minvest, which will be used to finance the operations of Minvest, including its subsidiary, Messina Diamonds (Pty) Limited. The balance of the purchase price (estimated to be 2.15-million rand) will be payable on or before April 30, 1999. The transaction is subject to Minvest's South African bank agreeing to release all security held by it affecting Star and its shares and shareholder loans. It is anticipated that the bank will be confirming its decision concerning the foregoing within the next two days. There is no assurance that the bank's agreement will be obtained, failing which the transaction will not be consummated. As well, no assurance can be given that Diamco will complete the purchase of Star. Minvest has been advised by its South African bank that its outstanding demand loan will be called up and that its credit facility has been frozen. Accordingly, Minvest can only use its internally generated operational revenue to finance its continuing operations. Management of Minvest is considering whether it will have sufficient funds to continue operations pending the closing of the Diamco transaction and how and for how long Minvest will be able to continue operating after such closing. As well, it is presently unclear what steps the bank intends to take to recover its loan, including whether Minvest will be placed into liquidation by the bank regardless of the outcome of the proposed Diamco transaction. In the event that the sale of Star is not concluded, the company will be unable to continue its South African mining operations and will be unable to repay the bridge loan and Minvest's demand bank facility. In any event, no assurance can be given that the company will be able to continue any of its operations. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com