Crew Development: $10,000,000 Private Placement Completed; Second Quarter Results Announced.VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Oct. 31, 1997-- Crew Development Cor(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , VSE See DOS/VSE. VSE - Virtual Storage Extended CRU.) FINANCING Further to our news release of September 18, 1997, Crew Development Corp. (Crew) is pleased to announce the successful completion of its $10,000,000 private placement, arranged to fund Crew's 29.75 percent participation in the profitable, high-grade Chibuluma copper/cobalt project in Zambia. Crew has secured a 40 percent direct / indirect interest in the project, for which Metorex, its 50 percent-owned operating arm in southern Africa
To date, the acquisition cost of US$17,500,000, together with initial working capital, have been funded 100 percent by equity contributions. Crew's direct contribution to date has totalled C$9,700,000. Negotiations are at an advanced stage with two major international banks to provide a long-term project debt facility, to finance up to 50 percent of the acquisition cost and the ongoing capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . At such time as these banking facilities are finalized See finalization. , Crew anticipates recovering approximately C$3,000,000 of its investment in the project to date which, together with its cash on hand, will provide it with funds to pursue further strategic acquisitions. OPERATING RESULTS The Company is pleased to announce its second quarter operating results. For the six months ended August 31, 1997, the Company generated a net loss of $187,483 ($0.01 per share) on sales of $4,526,000, compared with a net loss of $205,237 ($0.02 per share) on no sales for 1996. The 1997 loss includes several non-recurring expenses totalling approximately $200,000, together with its proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. share of the losses incurred by Consolidated Murchison Limited from the date of acquisition, July 1, 1997, in the approximate amount of $(88,000). It is anticipated that CML 1. CML - A query language. ["Towards a Knowledge Description Language", A. Borgida et al, in On Knowledge Base Management Systems, J. Mylopoulos et al eds, Springer 1986]. 2. CML - Concurrent ML. will be returned to profitability during the third quarter of 1997, under the stewardship stewardship the occupation of being a steward or custodian. Referring to animals it implies the caring sort of relationship based on an acceptance of the need to include the rights of animals in overall plans to maintain financial viability. of Metorex. Despite the net loss to date, Management is confident that the existing operations, together with the Chibuluma acquisition, effective October 1, 1997, will result in significantly improved operating results for the remainder of fiscal 1997. Cash on hand at August 31, 1997 amounted to $6.3 million, of which approximately $4.9 million represents Crew's 50 percent share of the cash held by Metorex. Total assets at August 31, 1997, amounted to $24.1 million (August,1996 - $5.9 million). John M. Darch, President -0- This News Release was prepared by the Board of Directors on behalf of Crew Development Corp. which is solely responsible for its contents. CONTACT: Crew Development Corporation John M. Darch, 604/ 683-7585 or 1-800-444-9284 604/ 662-3180 (FAX) E-mail: info@crewgroup.com http://www.crewgroup.com |
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