Moydow and Newmont Sign Definitive Agreement for Sale of Ntotoroso
Business Editors
TORONTO--(BUSINESS WIRE)--Aug. 25, 2003--Brian Kiernan, President
and CEO of Moydow Mines International Inc. (the "Company") is pleased
to announce that the Company has executed a definitive agreement with
Newmont Mining Corporation ("Newmont") for the sale of its interest in
the Ntotoroso project in Ghana by way of a Plan of Arrangement under
the provisions of the "Business Corporations Act (Ontario)". Total
consideration has been fixed at: (i) 800,000 Newmont common shares
which had a closing price on the NYSE of $37.54 per share on Friday,
August 22, 2003; (ii) a royalty of 2% on all recovered ounces of gold
and silver produced from Ntotoroso after the first 1.2 million gold
equivalent ounces and (iii) the delivery for cancellation of 1,325,882
common shares of the Company owned by Newmont. The closing of the
transaction is subject to the satisfaction of customary closing
conditions including the receipt of all necessary regulatory
approvals.
The definitive agreement contemplates a closing of the transaction
on or before October 30, 2003 following the Company's Annual and
Special Meeting of Shareholders ("Special Meeting") which has been
called to consider and approve the Plan of Arrangement. The Special
Meeting is expected to take place on or before October 15, 2003. The
Company is also pleased to announce that it intends to distribute to
its shareholders the proceeds from the disposition of 600,000 Newmont
common shares as of a record date to be fixed following its Special
Meeting. At present, this would represent a distribution of
approximately Cdn$1.20 per share, on a non-diluted basis assuming the
share price of Newmont is maintained. Following the distribution to
its shareholders, the Company will have working capital of
approximately Cdn$9 million after payment of taxes and costs in
connection with the transaction. The Company will be well funded to
pursue exploration and mining opportunities.
Commenting on the transaction Mr Kiernan said. " This deal
represents significant value to Moydow and its shareholders. At the
current Newmont share price it is worth about US$30 million, or more
than Cdn$40 million. Following completion Moydow will have 26.4
million shares outstanding. This transaction represents a substantial
premium on our total market capitalisation and does not take into
account any of our other assets in Africa or Canada."
This news release contains "forward-looking startements". Where
the Company expresses or implies an expectation or belief as to future
events or results, such expectation or belief is expressed in good
faith and believed to have a reasonable basis. However,
forward-looking statements are subject to risks, uncertainities and
other factors, which could cause actual results to differ materially
from future results expressed, projected or implied by such
forward-looking statements. Such risks include, but are not limited
to, satisfaction of conditions precedent to the closing of the Newmont
transaction. The Company does not undertake any obligation to release
publicly any revisions to any "forward-looking statement" to reflect
events or circumstances after the date of this news release, or to
reflect the occurrence of unanticipated events, except as may be
required under applicable securities laws.
Moydow Mines is engaged in the acquisition, exploration and
development of precious metals properties worldwide. Exploration
continues on the True Grit project in Newfoundland with more drilling
planned within the next few weeks. Given the strong success in Ghana,
the Company will reactivate exploration at Kanyankaw and Hwidem. The
Hwidem property is adjacent to the Ntotoroso project and less than 3
kilometres from the E-Zone deposit.
Corporate information is available on the Company's website
www.moydow.com. The Company is listed on the Toronto Stock Exchange
under the symbol "MOY".
"Signed"
Brian Kiernan
President & CEO
