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MINVEN GOLD, UNITED COIN MINES AND WHARF RESOURCES REACH SETTLEMENT AGREEMENT REGARDING OWNERSHIP OF GOLDEN REWARD

 MINVEN GOLD, UNITED COIN MINES AND WHARF RESOURCES
 REACH SETTLEMENT AGREEMENT REGARDING OWNERSHIP OF GOLDEN REWARD
 DENVER, May 7 /PRNewswire/ -- Wharf Resources Ltd. (NASDAQ: WFRAF) of Toronto, MinVen Gold Corp. (AMEX: MVG) of Denver and United Coin Mines Ltd. (Toronto: UCM) of Toronto jointly announced today that they have entered into a settlement agreement in respect of the ownership of the Golden Reward Mine and litigation between the parties in the Ontario Court of Justice (General Division).
 Under the terms of the settlement, the plan of arrangement which United Coin seeks to propose to its creditors and shareholders under the companies' Creditors Arrangement Act (Canada) will be amended to provide that, immediately upon acquiring a 100 percent ownership in Golden Reward, MinVen will sell a 60 percent interest to Wharf for US$21,250,000, retaining 40 percent in a joint venture with Wharf. The cash proceeds of the purchase price will be used in part by MinVen to fund the costs and expenses of the plan of arrangement which will provide the following payments to the creditors and shareholders of United Coin:
 -- Secured creditors of United Coin and its subsidiaries will
 have their claims paid in full.
 -- Ordinary unsecured creditors of United Coin will receive an
 aggregate of 6,250,000 Common Shares of MinVen and 2,125,000
 warrants to purchase an equivalent number of Common Shares of
 MinVen at US$0.75 per share for a period of two years
 following the implementation date of the plan. The Common
 Shares and warrants will be distributed pro rata to the
 ordinary unsecured creditors according to the amount of their
 claims.
 -- Common shareholders of United Coin will receive an aggregate
 of 3,000,000 Common Shares of MinVen and 1,000,000 warrants to
 purchase an equivalent number of Common Shares of MinVen at
 US$0.75 per share for a period of two years following the
 implementation date of the plan. The Common Shares and
 warrants of MinVen will be distributed pro rata to the common
 shareholders of United Coin according to the number of Common
 Shares held by them.
 As part of the same transaction in which Wharf acquires a 60 percent interest in Golden Reward, Wharf has also agreed to loan MinVen US$2,000,000 for a term of three years secured by MinVen's 40 percent interest in Golden Reward.
 It is intended that the plan of arrangement, as amended, will be finalized and submitted to United Coin's creditors and shareholders under the companies' Creditors Arrangement Act (Canada) as soon as possible. In the meantime and pending the implementation of the plan, the parties have agreed to suspend the litigation between them in the Ontario Court of Justice (General Division).
 The Golden Reward Mine is an open pit heap leach gold mine located near Lead, S.D. The mine is planned to produce 65,000 ounces of gold in 1992, and by 1994, is expected to produce gold at an annual rate of 80,000 ounces.
 MinVen Gold is a Denver-based mining company with a 100 percent interest in two gold mines and joint venture interests in another two, all of which are active gold producers. The company's shares are traded on the American, Toronto and Vancouver Stock Exchanges under the symbol "MVG".
 United Coin Mines is a Toronto-based mining company whose principal asset is its interest in Golden Reward. The company's shares are traded on the Toronto Stock Exchange under the symbol "UCM".
 Wharf Resources is a Toronto-based mining company which owns and operates the Wharf Gold Mine located near Lead, S.D. and is adjacent to the Golden Reward Mine. The company's shares are traded on the Toronto Stock Exchange and NASDAQ under the symbols "WFR" and "WFRAF", respectively.
 -0- 5/7/92
 /CONTACT: Robert R. McEwen or Rolando C. Francisco both of Wharf Resources, 416-361-0402; or Alan R. Bell or Robert R. Gilmore both of MinVen Gold, 303-980-5615; or Thomas Skimming, 416-598-2990 or Bruno Vatri, 416-625-9424, both of United Coin Mines/
 (MVG WFRAF) CO: MinVen Gold Corp.; United Coin Mines Ltd.; Wharf Resources Ltd. ST: Colorado, South Dakota IN: MNG SU:


MC -- DV005 -- 7558 05/07/92 11:05 EDT
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Publication:PR Newswire
Date:May 7, 1992
Words:698
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