Espalau Mining Corporation - Announcement.VAL D'OR Val d'Or (väl dôr), town (1991 pop. 23,842), SW Que., Canada, SE of Rouyn-Noranda. It is a mining center. Gold was discovered in the region in 1909; copper, zinc, lead, and molybdenum are also mined. , QUEBEC--(BUSINESS WIRE)--Feb. 12, 1997--ESPALAU(ME EPU EPU Energy Processing Unit EPU Economic Planning Unit (Malaysia) EPU E Pluribus Unum EPU European Payments Union (organization formed after WWII) EPU Emergency Power Unit .) Espalau Mining Corporation ("Espalau") announces that it has just received a final offer to purchase the main assets of its subsidiary Ross Finlay Ltd by the employees of the company and the Fonds de solidarite des travailleurs du Quebec which replaces the previous offer which was for the purchase of Ross Finlay's shares. Espalau also announces its results for the year ending August 31, 1996 which take into account this purchase offer. The company has decided to sell the operating assets Operating Assets Another term for working capital. of this subsidiary and concentrate its efforts strictly on exploration and mining production. Consequently, the financial statements are presented using the abandoned activities method as determined by the generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . The purchase offer is for a total of $19 millions and includes most of the operating assets of Ross Finlay and, in particular, the long term assets for $11.1 millions, the account receivables account receivable Any amount owed to a business as the result of a purchase of goods or services from it on a credit basis. Although the firm making the sale receives no written promise of payment, it enters the amount due as a current asset in its books. for $5.9 millions and the stocks for $2 millions. In the event that this offer is accepted, this transaction will improve Espalau's cash flow by $3.1 millions. The short term ratio will improve from 0.57:0 to 1:1 and the long-term debt ratio Long-term debt ratio The ratio of long-ter debt to total capitalization. (long- term debt/shareholder's equity) will significantly improve, going from 5.4:1 to 0.4:1. On the other hand, this transaction includes a write-off goodwill of $4,343,872 (abandoned activities) representing $0.40 per share. Upon completion of such a transaction, Espalau will have $5.5 millions available in liquidities, equipment and investments which will be directed towards the production, the exploration and development of its mining projects in Quebec and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . The main results for the period ending August 31 are as follows: -0-
1996 1995
________ ________
Sales $53,858 $2,040,238
Profits (losses) before
decrease of investments
value and abandoned
activities $174,058 ($574,589)
Losses on sale and decrease
of investments value ($973,843) $550,239
Abandoned activities ($4,343,872) $680,131
Profits (losses) ($5,143,657) $655,781
Outstanding shares 10,835,993 10,351,993
Abandoned activities,
per share (0.40) 0.06
Profits (losses), per share (0.49) 0.06
CONTACT: Espalau Mining Corporation Inc. Mr. Yves Gagnon Yves Gagnon is the current Canadian ambassador to Argentina and Paraguay. External links
819/825-9506 (FAX) or Espalau Mining Corporation Inc. Mr. Richard Brouillard, c.a., 819/ 825-1111 819/825-9506 (FAX) |
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