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SKYLINE GOLD CORP. SETTLES BANK INDEBTEDNESS

 VANCOUVER, British Columbia, Jan. 28 /PRNewswire/ -- Ronald C. Shon, chairman and chief executive officer of Skyline Gold. (Vancouver, Toronto: SKX), today announced an agreement with respect to the settlement of the company's $2.6 million debt to the Royal Bank of Canada.
 The agreement under which the bank has agreed to settle the company's outstanding obligations include the following principal conditions:
 1) An immediate payment of $739,500 by Skyline, funds to be obtained by way of a private placement, from a company controlled by Ronald C. Shon. The placement is for 321,500 shares at $2.30 per share;
 2) The issuance of 369,783 common shares to the bank, at a price of $2.30 per share with a current market value of $850,500. (The bank has undertaken not to sell in excess of 1/5 of their holdings per month or 73,957 shares per month);
 3) A deferred payment of approximately $1 million to be repaid in two years as cash benefits are realized from operations;
 The agreement is subject to regulatory approval.
 Regarding the settlement, Shon commented, "The retirement of the Royal Bank debt is the cornerstone of our financial plan which it is intended will include the restructuring of the company's remaining debts in the near term. We view the financial restructuring as an important aspect of the re-organization of Skyline Gold Corp., and as an essential component of our business plan and in the development of future opportunities."
 -0- 1/28/93
 /CONTACT: Michael Laidlaw, 604-687-0575 (until Feb. 11) or Richard R. Roy 604-689-4248, both of Skyline Gold/
 (SKX)


CO: Skyline Gold Corp. ST: British Columbia IN: MNG SU:

EH -- LA031 -- 0333 01/28/93 13:57 EST
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Publication:PR Newswire
Date:Jan 28, 1993
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