Memo to MOY management: You cannot hold an "Extraordinary General Meeting...at the end of July" if the deal is not closed by then. Just thought I'd let you know... _________________________________
May 28, Letter to Shareholders Message to our shareholders On March 24, 2003, your Company signed a letter of intent with Newmont Mining Corporation to sell its 50% interest in the Ntotoroso deposit for 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 price of these Newmont shares was fixed at a maximum of US$25.50 each, meaning that if the share price stays above that price Moydow will receive 784,314 shares of Newmont Mining.
The transaction is expected to be completed in the next two months and a combined Annual and Extraordinary General Meeting will be held at the end of July, at which time the shareholders will vote on the proposed transaction.
In the meantime, your Company continues its exploration efforts in Ghana and Canada. A new round of exploration at the Kanyankaw project in Ghana is expected to commence in the summer. At the recently optioned True Grit property in Newfoundland our geologists are on the ground and it is expected that drilling will commence in the next two weeks.
Subsequent to the sale of our 50% interest in Ntotoroso, your Company will be uniquely positioned to take advantage of the recent upswing in the gold price and the improved sentiment in the exploration market. As previously stated, it is the intention to return a major portion of the initial consideration directly to the shareholders in a tax-efficient manner, while still retaining enough to ensure that your Company can continue to explore aggressively worldwide.
Prior to the combined Annual and Extraordinary General Meeting to be held in Toronto at the end of July, 2003, a circular detailing the proposed transaction and the eventual path forward for your Company will be distributed to all shareholders. Thank you for your ongoing support during this time of transition and we look forward together to a successful future. “Signed” Brian Kiernan President and Chief Executive Officer May 28, 2003 http://www.moydow.com/1stQuarter2003.pdf
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