Monday, Sept. 8 /PRNewswire/ -- Echo Bay Mines Ltd. (Amex, TSE: ECO) has
agreed to sell its option to acquire a 60% interest in the Dolores gold
exploration project in Mexico to Minefinders Corporation Ltd. (VSE: MFL) for
C$4.0 million in cash and 1.25 million common shares of Minefinders, the two
companies announced today.
    Minefinders president Mark H. Bailey said, "We are delighted to regain an
undivided 100% interest in our Dolores project in Chihuahua, Mexico, where
recent interim resource calculations by an independent engineering company
confirmed a large precious metals deposit with significant upside potential."
    Echo Bay chairman Robert L. Leclerc said, "Echo Bay has elected to
increase its ownership in Minefinders, giving Echo Bay an immediate 25%
indirect interest in the promising Dolores property.  In addition, we will be
repaid for all of our direct exploration expenses at Dolores to date.  In
return, we will give up our future right to acquire a 60% interest in the
Dolores project, which would have required Echo Bay to fund all exploration
costs on the property through completion of a bankable feasibility study
within two years and then to pay Minefinders a minimum of US$12 million in
cash to purchase 60% of the proven and probable gold-equivalent ounces as
defined in the feasibility study at US$20 per ounce."
    Echo Bay currently owns 2.25 million common shares of Minefinders, or
17.7% of the common shares outstanding (15.2% if fully diluted).  The
transaction (C$4.0 million in cash and 1.25 million common shares valued at
C$4 per share) will increase Echo Bay's ownership of Minefinders to 3.5
million shares, or 25.0% of the shares outstanding (21.7% if fully diluted).
    The agreement, which has been ratified by the boards of directors of
Minefinders and Echo Bay, is scheduled to close on Oct. 2, 1997, subject to
approval by the Vancouver Stock Exchange.  A fee of 2% will be paid by
Minefinders to its consultant in this transaction.
    Minefinders plans to continue exploring the Dolores gold and silver
deposit with infill and stepout drilling following Echo Bay's completion of a
56-hole drilling program later this month.
    Echo Bay is a major gold producer with mines in Canada and the United
States and with gold exploration and development projects located principally
in the Americas.  Minefinders has advanced exploration projects in Mexico and
the United States and continues to acquire and develop precious metal
properties in the Americas.

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