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YUBA WESTGOLD REPORTS RESTRUCTURING CHARGE AND NET LOSS FOR SECOND QUARTER

 YUBA WESTGOLD REPORTS RESTRUCTURING CHARGE
 AND NET LOSS FOR SECOND QUARTER
 MARYSVILLE, Calif., Aug. 21 /PRNewswire/ -- Yuba WestGold, Inc. (Yuba) today reported a second quarter net loss attributable to common stock of $17.3 million, or $0.84 per share, for the three month period ended June 30, 1992, compared with a net loss attributable to common stock of $1.0 million, or $0.05 per share, in the second quarter of 1991. For the six month periods ended June 30, 1992 and 1991, Yuba reported losses attributable to common stock of $18.2 million, or $0.89 per share, and $1.6 million, or $0.08 per share, respectively.
 The losses for the three and six month periods ended June 30, 1992, include a charge of $15.5 million, representing the excess of net book value over estimated realizable value for Yuba's assets. This charge reflects the likelihood that the proceeds derived from a sale of its assets are expected to be less than their book value.
 Last week, Yuba announced that its principal shareholder, Western Gold Exploration and Mining Company, Limited Partnership (WestGold) had advised it that WestGold did not intend to provide additional financing to Yuba under the terms of their line of credit agreement and that WestGold may at any time demand payment under the terms of certain outstanding demand notes of Yuba held by WestGold aggregating approximately $15.0 million as of June 30, 1992. In addition, Yuba has failed to make a scheduled payment to the Bank of America under a term loan. The failure to make this payment is a default under the loan and will permit the bank to declare the loan balance of approximately $725,000 immediately due and payable, although the bank has not done so.
 Yuba has been dependent on funding from WestGold to meet its net cash requirements, and unless Yuba is able to obtain financing from other sources, which management believes is unlikely, it will be unable to repay certain obligations as they come due. Yuba may therefore be required to seek protection from its creditors under provisions of the U.S. Bankruptcy Code. In the event Yuba were to sell its assets in connection with a bankruptcy proceeding or otherwise, the proceeds of such sale will not be sufficient to pay its debts, including those to WestGold, or provide any return to the holders of its equity securities, including its common stock.
 Yuba is engaged in the dredging of gold and other precious metals located along the Yuba River in Yuba County, Calif.
 -0- 8/21/92
 /CONTACT: Jim D. James of Yuba WestGold, 916-742-7164/ CO: Yuba WestGold, Inc. ST: California IN: MNG SU: ERN


TS -- NY034 -- 2135 08/21/92 12:21 EDT
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Publication:PR Newswire
Date:Aug 21, 1992
Words:458
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