Asia Pacific Resources: $48 Million Financing Completed.VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Aug. 13, 1998-- Asia Pacific(NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :APQCF) (VSE See DOS/VSE. VSE - Virtual Storage Extended :APQ APQ Accordo di Programma Quadro APQ Association des Paraplégiques du Québec APQ Association des Pathologistes du Québec APQ Art Pepper Quartet (jazz group) APQ Armaments Planning Questionnaire APQ Advanced Placement Question .) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :APQ.) (FRANKFURT:APQ.F) Asia Pacific Resources Ltd. is pleased to announce the closing of the C$48 million financing reported in the company's News Releases dated June 22 and June 29, 1998. The financing comprises the equivalent of $36 million in the form of US dollar denominated debentures, convertible into common shares of the company at an exercise price of C$4.00 per share, together with a private placement of C$12 million representing 3 million common shares at a price of C$4.00 per share. The debentures will have a two-year maturity and upon conversion, a further 9 million shares would be issued, for a total of 12 million shares in respect of the financing. These shares would then be approximately 19 percent of the total shares issued in the company. Any fluctuations in the U.S. and Canadian currency exchange rate will not affect the number of shares issued under the Debentureand, upon conversion, the interest accrued under the debentures will be waived. Having completed its due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. process, Olympus Capital Holdings Asia (Olympus) and its affiliates have subscribed for the equivalent of C$28.8 million in convertible debentures, representing 60 percent of the total financing. Included in this amount is the equivalent of C$2.9 million in investment by Finansa Ltd., Olympus' local advisor in Thailand and Indochina. Olympus manages committed funds dedicated to making significant, long-term investments in public and private companies in Asia. Olympus has offices and affiliates in Hong Kong, New York, Seoul, Bangkok, Jakarta and Manila. Ziff Brothers Investment (ZBI ZBI Zebra Basic Interpreter ZBI Ziff Brothers Investments ZBI Zero Back Injuries ZBI Zero Based Index ), based in New York, is the founding investor in Olympus. ZBI is the primary investment vehicle of the Ziff family and related entities, and currently has several billion dollars under management. ZBI was partially capitalised with proceeds from the sale of the Ziff-Davis Publishing Company. ZBI invests in a broad range of sectors, both directly and through its partners. The financing has been arranged by Asian Capital Partners (Hong Kong), David Williamson Associates (London) and Scotia Capital Markets (Toronto). The proceeds of the financing will be allocated to settle the Promissory Note for C$40,842,500 relating to the company's acquisition of an 87.5 percent controlling interest in Metro Resources Company Limited, and to provide additional working capital for the company. The acquisition of the Metro Resources Company Limited interest takes the company's direct and indirect interest in Asia Pacific Potash Corp. (APPC (Advanced Program-to-Program Communications) A high-level protocol from IBM that allows one program to interact with another across the network. It supports client/server and distributed computing by providing a common programming interface on all IBM platforms. ) from 62.5 percent to 90 percent, increasing potential earnings from the Udon Thani potash developments by some 44 percent. Completion of this financing marks a significant point in the development of Asia Pacific Resources Ltd., as well as the development of a major potash industry at the APPC concession area in northeast Thailand. During the past six years, a succession of exploration and development programs have led to the discovery of two significant high grade potash deposits, the Somboon and Udon u·don n. A thick Japanese noodle made with wheat flour, usually served in soup or broth. [Japanese, wheat noodle.] fields, with gross in-situ resources of some 1,400 million tonnes. The company is currently undertaking the final review of the recently received Feasibility Study for the proposed 2 million tonne per annum Somboon potash mine and anticipates releasing the results and conclusions of the study in the near future. The Somboon Mine will be the first commercial mine to be developed in Asia, which has become the fastest growing and most important potash consuming region in the world. The region currently consumes 11 million tonnes of potash, with China, India and Malaysia being the largest consumers. The Udon deposit will be subsequently developed in line with increasing demand in the region. Asia Pacific Resources Ltd. and Norsk Hydro Asia Pte. Ltd. (Hydro), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Norsk Hydro ASA Asa (ā`sə), in the Bible, king of Judah, son and successor of Abijah. He was a good king, zealous in his extirpation of idols. When Baasha of Israel took Ramah (a few miles N of Jerusalem), Asa bought the help of Benhadad of Damascus and , Norway, have entered into a Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. for the purpose of forming a strategic alliance for the financing and development of the Udon Thani potash resources. The parties have agreed to enter into an Offtake Off´take` n. 1. Act of taking off; specif., the taking off or purchase of goods. 2. Something taken off; a deduction. 3. A channel for taking away air or water; also, the point of beginning of such a channel; a take-off. and Marketing Agreement, with Hydro becoming an equity participant in APPC, which will be developed as a fully operational production company. Dr. Gerald D. Wright, Executive Chairman
CONTACT: Asia Pacific Resources Ltd.
Dr. Gerald D. Wright, 604/681-8003
http://www.crewgroup.com e-mail:
info@crewgroup.com
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