DENVER, Oct. 24 /PRNewswire/ -- Echo Bay Mines Ltd. (Amex and TSE: ECO)
said today that it has elected not to exercise its option to purchase a
controlling interest in the Kingking copper-gold property in the Philippines
from Benguet Corporation (NYSE: BE).  The option expires at midnight tomorrow.
    As reported, Echo Bay and its joint venture partner, TVI Pacific Inc.
(TSE: TVI), completed an initial feasibility study in April of this year.  The
study concluded that the project would not meet the joint venture's desired
rates of return, principally due to the required payment of $67 million on or
before Oct. 25 in order to exercise the purchase option (Echo Bay's 75% share,
$50.3 million).
    The joint venture could have extended the option period for another year
by paying an additional $10.5 million.  It elected not to do so.
    Echo Bay is currently conducting a major review of the carrying values of
the company's four producing gold mines and portfolio of exploration
properties, development projects (including Kingking) and other assets.  The
company plans to announce the results of this review of asset carrying values
in connection with its announcement of third quarter results on Tuesday,
Nov. 4.
    Echo Bay is a major gold producer with mines in Canada and the United
States.  The primary markets for its shares are the American and Toronto stock
exchanges.  Its shares are also listed on stock exchanges in Switzerland,
France, Germany and Belgium.

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