Aurex Resources -- Agreement with Cobre Mining Co.VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , B.C.--(BUSINESS WIRE)--Jan. 21, 1997--Aurex Resources Corp. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :AXR AXR Absolute Executive Recruitment (Sydney, NSW, Australia) AXR Abdominal X-Ray .) ("Aurex") is pleased to announce that they have entered into an agreement with Cobre Mining Co. ("Cobre"), an American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of mining company, purusant to which Aurex will acquire Cobre by way of an amalgamation amalgamation /amal·ga·ma·tion/ (ah-mal´gah-ma´shun) trituration (3). amalgamation ( and share exchange with the result that Cobre will become a wholly-owned subsidiary of Aurex. The purchase price of US$46.5 million for the Cobre shares is being satisfied through the issuance of 124 million Aurex shares at US$0.375 per share. Concurrent with the closing of the amalgamation, Aurex will change its name to "Cobre Mining Company Inc." and will consolidate its share capital on a basis of 10:1. Prior to closing of the amalgamation, Cobre will raise an additional US$50 million through a special warrants equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. which proceeds will be used to retire approximately US$36 million of debt and agreements between Glencore Ltd. and Cobre with the balance to fund Cobre's mill expansion and exploration programs. Following completion of the share consolidation and the equity financing, there will be approximately 28.9 million shares of Cobre Mining Co. outstanding. Cobre is the owner of the Continental Mine located near Silver City, N.M. The Continental Mine produces copper concentrates from an open pit mine and two underground mines and related milling and concentrate production facilities. Cobre produced more than 52 million lbs of copper in the first nine months of 1996 at a cash cost of US$0.77 per pound, excluding interest and including selling and general administrative expenses. Cobre's proven and probable reserves total approximately 1.8 billion pounds of copper. A meeting of Aurex shareholders will be held not later than March 6, 1997 to obtain the required shareholder approvals. This transaction is also subject to regulatory approval from The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. . -0- This release has been prepared by management of Aurex who takes full responsibility for its contents. The Toronto Stock Exchange neither approves nor disapproves of this news release. CONTACT: Aurex Resources Corp. Mark Kucher, 604/257-1644 or Jim Tompkins, 604/257-1644 |
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