Cornucopia Resources Ltd. Reports Net Loss.VANCOVUER, British Columbia--(BUSINESS WIRE)--April 15, 1998--Cornucopia Resources Ltd. reports a net loss of $18.5 million or $0.49 per share for the year ended December 31, 1997, compared with a net loss of $2.6 million or $0.09 per share in 1996. $16 million of the net loss was attributable to the write down of the Mineral Ridge Mine assets to reflect the re-evaluation of reserves at lower gold prices. For the six months ended December 31, 1997, a total of 13,951 ounces of gold was shipped and sold for revenue of $5.3 million, equivalent to a realized price of $378.75 per ounce. Due to suspension of mining in November, 1997, commercial production tests have yet to be completed. Consequently, net smelter revenues have been recorded as an offset to capital expenditures and operating costs operating costs npl → gastos mpl operacionales continue to be recorded as capital expenditures. Crushing and leaching operations are continuing and gold is being recovered and sold. As of December 31, 1997, the Mineral Ridge Mine was not in compliance with certain of the covenants pursuant to the loan agreement with its banker Dresdner Kleinwort Dresdner Kleinwort (DKIB) is the investment bank of Dresdner Bank AG, part of Allianz since July 2001. Headquartered in London and Frankfurt and with an international network including offices in the financial centres of New York and Tokyo, Dresdner Kleinwort provides a wide range Benson. Principal payments of $1.5 million each due September 30, 1997 and December 31, 1997, have not yet been made. In view of the breaches of covenant, the company has classified the entire loan and overdue interest to current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. . The working capital deficiency at year end was $14.0 million. In 1996, the company entered into a $12 million fixed price contract with Roberts & Schaefer company for the construction of facilities and plant at the Mineral Ridge Mine of which $11.4 million had been paid by December 4, 1997. On December 8, 1997, Roberts & Schaefer recorded a notice of lien on the Mineral Ridge property claiming $619,486 for holdback hold·back n. 1. a. The act of holding back. b. Something held back. 2. A device that retains or restrains. 3. , legal fees and interest. On April 10, 1998, Roberts & Schaefer filed notice of foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. . The company will defend against this action. D. H. Blattner & Sons, on February 10, 1998, recorded a notice of lien on the Mineral Ridge property for payment of outstanding invoices for contract mining. Invoices totaling $0.7 million are recorded in accounts payable and are expected to be paid as permitted by cash flow from the Mineral Ridge Mine. The company faces serious liquidity problems which can only be solved by an infusion of fresh capital to rectify the working capital deficiency, restore the mine to full production, and provide funds for further exploration and capital improvements. Cornucopia cornucopia (kôr'ny  kō`pēə), in Greek mythology, magnificent horn that filled itself with whatever meat or drink its owner requested. is currently holding discussions with several companies interested in a corporate combination or financial restructuring. Any such arrangement will require the continuing cooperation of our bankers, as well as the concurrence CONCURRENCE, French law. The equality of rights, or privilege which several persons-have over the same thing; as, for example, the right which two judgment creditors, Whose judgments were rendered at the same time, have to be paid out of the proceeds of real estate bound by them. Dict. de Jur. h.t. of Cornucopia's shareholders and regulatory approvals. All available means will be used by management to ensure the survival of the company without undue erosion of shareholder value. As of February 23, 1998, the company, by virtue of its current share price, ceased to be in compliance with the new Nasdaq SmallCap Market regulation which requires a minimum bid price of $1.00 for a period of ten trading days. This may result in de-listing of the company's shares. Ways and means WAYS AND MEANS. In legislative assemblies there is usually appointed a committee whose duties are to inquire into, and propose to the house, the ways and means to be adopted to raise funds for the use of the government. This body is called the committee of ways and means. of preserving the listing are being reviewed, particularly in conjunction with any proposed merger. -0- All references to dollars are to United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. dollars. ON BEHALF OF THE BOARD OF DIRECTORS (signed) Andrew F. B. Milligan President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Cornucopia Resources Ltd. CONTACT: Cornucopia Resources Ltd. Andrew F. B. Milligan, 604/687-0619 800/436.4404 |
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