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YUBA WESTGOLD SAYS PRINCIPAL SHAREHOLDER HAS TERMINATED FURTHER FUNDING OF YUBA'S CASH REQUIREMENTS

 YUBA WESTGOLD SAYS PRINCIPAL SHAREHOLDER HAS TERMINATED
 FURTHER FUNDING OF YUBA'S CASH REQUIREMENTS
 MARYSVILLE, Calif., Aug. 12 /PRNewswire/ -- Yuba WestGold, Inc. announced today that its principal shareholder, Western Gold Exploration and Mining Company, Limited Partnership (WestGold), has advised Yuba WestGold's management that WestGold has received no acceptable offers for its controlling interest in Yuba WestGold and that WestGold does not intend to provide additional financing to Yuba WestGold under the terms of their line of credit agreement, which provides that WestGold may provide additional funding to Yuba WestGold in its sole discretion. WestGold further advised Yuba WestGold's management that WestGold may at any time demand payment under the terms of certain outstanding demand notes of Yuba WestGold aggregating approximately $15 million as of June 30, 1992.
 Yuba WestGold has been dependent on funding from WestGold to meet its net cash requirements, and unless it is able to obtain financing from other sources, which management believes is unlikely, it will be unable to repay its debts to WestGold or to pay certain of its other obligations as they come due. Yuba WestGold may therefore be required to seek protection from its creditors under provisions of the U.S. Bankruptcy Code. In the event Yuba WestGold were to sell its assets in connection with a bankruptcy proceeding or otherwise, the proceeds of such sale will likely 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 WestGold intends to delay the filing of its quarterly report on Form 10-Q for the fiscal quarter ended June 30, 1992, pending an adjustment to its financial statements to reflect the likelihood that the proceeds derived from a sale of its assets are expected to be substantially less than their book value. Yuba WestGold also intends to take steps to terminate its registration statement providing for the resale of common stock owned by certain of its stockholders.
 Yuba WestGold vice president, William E. Brooks, said: "We are discouraged by this turn of events and are continuing to take steps to maximize cash flow during this difficult period; however, Yuba WestGold's ability to continue as a going concern appears doubtful in light of WestGold's unwillingness to fund Yuba WestGold's net cash requirements under the line of credit agreement." Brooks commented further: "Yuba WestGold is nevertheless continuing the gold dredging operations of Yuba Placer Gold Company, which is meeting its operating cash requirements, and will continue to take all reasonable steps necessary to continue such operations."
 Yuba WestGold is engaged in the dredging of gold and other precious metals located along the Yuba River in Yuba County, Calif.
 -0- 8/12/92
 /CONTACT: William Brooks of Yuba WestGold, 916-742-7164/ CO: Yuba WestGold ST: California IN: MNG SU:


SM -- NY079 -- 6343 08/12/92 16:20 EDT
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Publication:PR Newswire
Date:Aug 12, 1992
Words:475
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