Moydow Mines fka MOY

[amarksp]

link to letter:

http://www.sedar.com/csfsprod/data37/filings/00540035/00000001/w%3A%5C3w_out%5C25202%5Cmda.pdf

text:
Message to our Shareholders
On March 24, 2003, your Company announced that it had signed a letter of intent to sell its interest in the Ntotoroso property to Newmont Mining Corporation. A 50/50 joint venture between Moydow and Newmont, the Ntotoroso property is located on the Ahafo or Yamfo-Sefwi belt in Ghana, West Africa.
Initial consideration to Moydow for its interest in Ntotoroso will be US$20 million, of which Moydow will have the option of receiving up to US$2 million in cash and the balance in Newmont shares. The deemed price of the Newmont shares will be determined three business days before closing but will not exceed US$25.50 or be less than US$24.50. In addition, Moydow will receive a 2% net smelter return royalty in respect of all gold and silver production from the Ntotoroso property in excess of the currently defined reserve of 1.2 million ounces.
In the past weeks your Company has been actively working with Newmont on due diligence and arranging the corporate structures necessary to complete the transaction. It is expected to complete the proposed transaction within the original timeframe of 120 days.

The regulatory authorities require that the consolidated financial statements for the year ended December 31, 2002 be filed by May 20, 2003. The Company anticipates that a combined annual meeting/special meeting will be held in late July 2003. This will allow time for the preparation of the final transaction agreement and information circular/annual report and the completion of all legal and regulatory matters. Further announcements will be issued as things progress.
It is the intention of the Company that a major portion of the initial consideration be returned to the shareholders in a tax-efficient manner.

Once the sale of Ntotoroso is completed your renewed Company will be well funded and in a unique position to take advantage of the many opportunities that will undoubtedly arise. The Company plans to begin drilling on the very prospective True Grit property in Newfoundland within the next month. In addition, several new projects are currently being assessed with a view to an aggressive exploration program commencing in the next few months.

The management and the Board of Directors wish to thank its shareholders for their loyal support and together we look forward to closing the transaction with Newmont and to further exploration successes.

“Signed”
Brian Kiernan
President and Chief Executive Officer May 12, 2003