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ST. GEORGE METALS ANNOUNCES RESTRUCTURING PROPOSAL

 RICHMOND, Va., Sept. 24 /PRNewswire/ -- St. George Metals, Inc. (Vancouver: SGE.V; OTC: SGGM), a Nevada corporation with gold mining operations in Battle Mountain, Nev., ("the company"), announced today that it had received consents from all holders of its $4.3 million of unsecured debt to a plan of financing unanimously approved by the company's board of directors on Sept. 15, 1993. Approval by the holders of the unsecured debt satisfies a key condition that permits a small group of shareholders and others to advance operating funds to the company to enable the company to resume operations at its Dean Mine property in Nevada. The company announced last week the cessation of active mining operations at its Dean Mine site which had been the company's only significant active project.
 Subject to satisfaction of various conditions, the board approved plan contemplates a restructuring of the terms of the company's unsecured debt, cancellation of outstanding warrants and options to purchase up to approximately 6.5 million shares of common stock, certain adjustments in the terms of the company's convertible preferred stock, and the issuance of additional common stock. If the plan is consummated, the company estimates the newly issued shares would represent approximately 60-65 percent of the company's outstanding common stock on a fully diluted basis.
 The company stated that although consummation of the plan would result in substantial dilution of the existing stockholder equity, the plan contemplates, to the extent possible, that shareholders as of a record date not yet set would be given an opportunity to maintain their existing relative pro-rata position. In addition to approvals by holders of the company's series A and series B preferred stock and the holders of its unsecured debt, consummation of the plan also will require shareholder approval of an increase in the company's authorized shares.
 C.B. Robertson III, chairman of the board, added that the board unanimously believed its plan to be in the best interests of all creditors and shareholders, as it appeared to offer the only viable way of continuing the company's mining operations. Members of the company's board of directors hold approximately 60 percent of the company's unsecured debt and approximately 53 percent of its series A preferred stock, with the balance of both categories held by fewer than 10 holders.
 The Vancouver Stock Exchange has neither approved nor disapproved the content of this release.
 -0- 9/24/93
 /CONTACT: C.B. Robertson III of St. George Metals, Inc., 713-977-4471/


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

LG -- NY052 -- 5447 09/24/93 13:26 EDT
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Publication:PR Newswire
Date:Sep 24, 1993
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