EDMONTON, Alberta, Canada, Sept. 14 /PRNewswire/ -- Echo Bay Mines Ltd.
(Toronto; Amex: ECO) announced today that it has elected to defer the interest
payment due on October 1, 2001 to holders of its US$100 million in principal
amount of capital securities. Under the terms of the capital securities,
issued in March 1997, the company has the right to defer interest payments for
up to 10 consecutive semi-annual periods. The current deferral represents the
eighth consecutive deferral of semi-annual interest payments. Interest
accrues during the deferral period at the rate of 12% per annum, compounded
semi-annually, compared with the 11% face amount payable on the capital
securities.
The company announced on September 5, 2001 that it has entered into
support and lock-up agreements with Franco-Nevada Mining Corporation Limited
and Kinross Gold Corporation, holding approximately 72 percent and
15.8 percent of the capital securities, respectively, to exchange their
capital securities for common shares in the capital of the company. The
agreements are conditional upon 90 percent of the remaining capital security
holders agreeing to exchange their capital securities on the same terms as
Franco-Nevada and Kinross. The company will be seeking shareholder approval
to exchange the capital securities for common shares.
No registration statement relating to the capital securities, common
shares or the exchange transaction has been filed. This press release does
not constitute an offer by the company to sell common shares or the
solicitation by it of an offer to buy the capital securities. There shall be
no sale by the company of the common shares or offer by it to buy capital
securities in any state in which an offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such state.
Echo Bay mines gold and silver in North America. The primary markets for
its common shares are the American and Toronto stock exchanges.
Certain statements contained in this press release may be forward-looking.
Such statements are only predictions and actual events or results may differ
materially. Factors that could cause actual results to differ materially
include the possibility that the transactions with Franco-Nevada and Kinross
will not be completed.
For further information, please contact: Tom Yip, Vice President and
Chief Financial Officer of Echo Bay Mines Ltd., +1-303-714-8720,
http://www.echobay.com.
SOURCE Echo Bay Mines Ltd.
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Related links:
http://www.echobay.com
Company News On-Call:
http://www.prnewswire.com/comp/269609.html
CONTACT:
Tom Yip, Vice President and Chief Financial
Officer of Echo Bay Mines Ltd., +1-303-714-8720
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