ENGLEWOOD, Colo., Sept. 16 /PRNewswire/ -- Echo Bay Mines Ltd.
(Amex: ECO; Toronto) announced today, that in light of continued low gold
prices, the company has elected to defer the interest payment due on
October 1, 1998 to holders of its $100 million 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
semiannual periods. The interest payment due on April 1, 1998 was also
deferred. Interest accrues during the deferral period at the rate of 12% per
annum, compounded semiannually, compared with the 11% face amount payable on
the capital securities.
The next scheduled interest payment date is April 1, 1999. Whether to
continue the deferral period or recommence payment of interest will be decided
prior to that date. At the conclusion of the deferral period, all accrued
interest will be paid in full. At its discretion, the company may satisfy its
deferred interest obligation by delivering common shares to a trustee for
sale, the proceeds of which would be used to pay the deferred interest. The
company has no current plans to deliver shares to the trustee.
Echo Bay mines gold and silver in North America. The primary markets for
its common shares are the American and Toronto stock exchanges.
SOURCE Echo Bay Mines Ltd.
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Related links:
http://www.echobay.com
CONTACT:
Robbin Lee of Echo Bay Mines Ltd.,
303-714-8829
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