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AMAX GOLD INC. LAUNCHES BID TO ACQUIRE FAIRBANKS GOLD LTD.

    AMAX GOLD INC. LAUNCHES BID TO ACQUIRE FAIRBANKS GOLD LTD.
    VANCOUVER, British Columbia, Nov. 7 /PRNewsiwre/ -- Eric V. Friedland, chairman of Fairbanks Gold Ltd. (Toronto, Vancouver: FX) announced today that Amax Gold Inc. (NYSE, Toronto: AXG) has commenced an exchange offer for all of the outstanding common shares of the company.  The offer will remain open for acceptance until midnight, Toronto, Ontario time (9 p.m. Vancouver, British Columbia time) on Jan. 2, 1992, unless the offer is extended.  Consummation of the offer is conditioned on not less than 90 percent of the issued and outstanding Fairbanks Gold common shares being deposited under the offer and not withdrawn.
    Fairbanks Gold indirectly owns a 51 percent interest in the Fort Knox gold deposit north of Fairbanks, Alaska.  The remaining 49 percent interest in the deposit is held indirectly by Gilmore Gold Inc., a privately held Delaware corporation.  Amax Gold announced on Sept. 12, 1991, that it has entered into agreements governing the terms of the exchange offer for Fairbanks Gold and a merger of Gilmore Gold with a wholly owned subsidiary of Amax Gold.
    To acquire Fairbanks Gold, Amax Gold is offering to exchange two shares of Amax Gold common stock plus one Amax Gold Warrant for every four Fairbanks Gold common shares.  In connection with the merger of Gilmore Gold, shareholders of Gilmore Gold will receive 6.3 million shares of Amax Gold common stock and 630,000 warrants.  Each warrant will have a term of four years from the date of first issue of any of the warrants and will entitle the holder to purchase one share of Amax Gold common stock for $21.00 U.S.
    Robert Friedland and Ivanhoe Capital Corp., which is wholly owned by Friedland, have committed to deposit their Fairbanks Gold common shares, which represent approximately 37.9 percent of the outstanding Fairbanks Gold common shares (net of shares subject to outstanding options and other rights of acquisitions in favor of third parties, into the exchange offer.
    Fairbanks Gold common shares should be tendered in the manner described in the prospectus and take-over bid circular and accompanying letter of acceptance and transmittal or, alternatively, in the notice of guaranteed delivery.  For copies of the prospectus and take-over bid circular, contact:
    RBC Dominion Securities                Morrow & Co.
    Park Place - Suite 2100                345 Hudson St.
    666 Burrard St.                        New York, NY 10014
    Vancouver, B.C.                        U.S.A.
    V6C 3B1                                800-634-4458
    Canada
    604-688-8411
    Attn:  Investment Banking Dept.
    National Trust Co.
    Suite 900 - 666 Burrard St.
    Vancouver, B.C. V6C 2Z9
    Canada
    604-684-8431
    Attn:  Corporate Trust Services
    Upon completion of the exchange offer and the Gilmore merger, Amax Gold will have issued a total of approximately 13.5 million additional common shares and 4.23 million warrants.
    Amax Gold Inc. produces and explores for gold in the United States and New Zealand, is listed on the New York and Toronto Stock Exchanges and is 87 percent owned by Amax Inc.
    -0-                    11/7/91
    /CONTACT:  Eric V. Friedland, chairman of Fairbanks Gold, 604-640-6714/
    (FX. AXG.) CO:  Fairbanks Gold Ltd. ST:  British Columbia IN:  MNG SU: AL -- LA014 -- 2205 11/07/91 12:07 EST
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Publication:PR Newswire
Date:Nov 7, 1991
Words:526
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