Dayton's Andacollo Mine Begins Formal Liquidation Of Mining And Plant Equipment.Business Editors ANDACOLLO, Chile--(BUSINESS WIRE)--June 21, 2001 Mr. Fred Earnest, General Manager of Compania Minera Dayton ("CMD CMD cerebromacular degeneration. "), 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 Dayton Mining Corporation (AMEX AMEX See: American Stock Exchange , TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : DAY) announces that the CMD and its creditors have reached a court approved agreement, which gives CMD protection from bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party for a period of four years. In a special judicial hearing on May 15, 2001 the creditors of CMD unanimously accepted the Creditors Agreement with essentially the same terms and conditions that had been originally proposed by CMD. The Court of Andacollo approved the agreement in a resolution dated May 31, 2001. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Creditors Agreement, CMD will maintain control of the operation and continue normal business activities with the oversight of a mutually agreed upon Adj. 1. agreed upon - constituted or contracted by stipulation or agreement; "stipulatory obligations" stipulatory noncontroversial, uncontroversial - not likely to arouse controversy three member commission. The Creditors Agreement obligates CMD to sell the mine equipment fleet, the three-stage crushing plant, the overland conveying/stacking system and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. as required in an orderly and efficient manner. Proceeds from the sale of assets in excess of amounts owed (in the case of the mining fleet) will pass directly to the creditors. Proceeds in excess of operating costs will be paid to the creditors on a quarterly basis. The creditors of CMD have agreed to a four-year period to repay all outstanding obligations with interest adjustments to be made on the outstanding balance on May 15th of each year. As reported on April 19, 2001, CMD has contracted Henry Butcher International Ltd. ("Henry Butcher") to manage the marketing and sale of the mining fleet, crushing plant and conveying/stacking system located at the Andacollo Mine in northern-central Chile. Henry Butcher has completed the first mass mailing and has a full-time representative on site in Andacollo. The Andacollo Mine suspended mining and crushing activities on September 29, 2000. For the period October 1, 2000 through May 31, 2001, the Andacollo Mine has produced a total of 35,600 ounces of gold, well ahead of the projections made at the time of the shutdown. Leaching of the heap continues and at present results in daily production of 105 ounces of gold is being achieved. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement: The statements, which are not historical facts contained in this release, are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from targeted results. These risks and uncertainties include but are not limited to significant declines in precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. prices; currency fluctuations; increases in production costs; differences in ore grades, recovery rates, and tonnes mined from those expected; changes in mining, or heap leaching rates from currently planned rates; the results of current exploration activities and new opportunities; and other factors detailed in the Company's filings with the U.S. Securities and Exchange Commission. For further information on the availability of the equipment, parts and supplies inventory, please contact Mr. Fred Earnest, General Manager of Compania Minera Dayton directly at 56-51-431-433 or by facsimile at 56-51-431-500. Dayton Mining Corporation Suite 2393 - \three Bentall Centre 595 Burrard Street PO Box 49186 Vancouver, BC Canada V7X 1K8 Tel: 604 662-8383 Fax: 604 684 1329 email: dmining@dayton-mining.com www.dayton-mining.com |
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