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ST. GEORGE METALS ANNOUNCES CESSATION OF ACTIVE OPERATIONS

 RICHMOND, Va., Sept. 15 /PRNewswire/ -- St. George Metals, Inc. (OTC: SGGM), a Nevada corporation with gold mining operations in Battle Mountain, Nev., announced today that, as it had previously warned, it had been forced to cease active operations at its Dean Mine property as a result of continuing severe cash shortages. The company stated that it was considering its alternatives, including the possibility of attempting a financial restructuring pursuant to court protection.
 The company also announced that Neal O. Wade Jr., formerly chairman of the board, president and chief executive officer, had retired from those positions. Wade will remain a member of the company's board of directors. The board has elected C. B. Robertson III, a Richmond, Va., businessman who has been a member of St. George's board of directors since 1992, and is also a member of the St. George Executive Committee, to succeed Wade as chairman. Robertson stated that the company had been engaged in intense discussions in recent days in an effort to work out an accommodation between certain individuals that had indicated an interest in providing additional financing to the company and certain holders of the company's unsecured debt but that no accommodation had been reached.
 The company also updated its previously disclosed development activities at its Dean Mine operation, stating that the 6,700 level drift to the "D-21" target area that was started in late December 1992 cross-cut the Pittsburgh vein earlier this summer than originally projected.
 Raises and sublevels encountered an ore body that the company has been in the process of defining. Robertson stated the company was encouraged by sampling results in the area, but added that the company would not be able to resume further operations unless the company is successful in putting in place additional financing.
 The Vancouver Stock Exchange has neither approved nor disapproved the content of this release.
 -0- 9/15/93
 /CONTACT: C. B. Robertson III, chairman of the board of St. George Metals, Inc., 713-977-4471/
 (SGGM)


CO: St. George Metals, Inc. ST: Nevada, Virginia IN: MNG SU: PER

CK -- NY052 -- 2241 09/15/93 12:30 EDT
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Publication:PR Newswire
Date:Sep 15, 1993
Words:351
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