ENGLEWOOD, Colo., March 6 /PRNewswire/ -_ Echo Bay Mines Ltd.
(AMEX: ECO; TSE) announced today that it has filed a preliminary prospectus
supplement with the U.S. Securities and Exchange Commission for the offer and
sale of US$100 million of capital securities.
    The securities are to be offered pursuant to the company's omnibus shelf
registration statement that was declared effective by the U.S. Securities and
Exchange Commission in July 1994.
    The offering is to be made only in the United States.  The issue is to
consist of capital securities due 2027 bearing interest, payable in U.S.
dollars, at a rate that is yet to be determined.  The securities will be
unsecured, subordinated and junior in right of payment to all senior
indebtedness of the company, and will be accounted for primarily as
shareholders' equity in accordance with generally accepted accounting
principles in Canada.
    The proceeds are to be used for debt repayment and general corporate
purposes, including capital expenditures such as the development or expansion
of the company's existing properties and working capital.
    The securities will be offered solely in the United States by Goldman,
Sachs & Co. as underwriter.  A prospectus can be obtained from Goldman, Sachs
& Co., 85 Broad Street, New York, NY  10004.
    Echo Bay is a major gold producer with mines in Canada and the United
States and with exploration and development projects on four continents.  The
primary markets for its common shares are the American and Toronto stock
exchanges.

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