Waseco Resources Inc - News Release
Waseco to eliminate most of its debt
|Waseco Resources Inc||"YWS" TSX-V|
|Wednesday October 15, 2003||News Release|
|Toronto, Ontario, October 15th, 2003.
Waseco Resources Inc. (TSX-Venture: "YWS")
announces that it has entered into an agreement with
Diadem Resources Ltd. to convert $250,000 of debt
into: a) a 2% NSR Royalty on its 60% interest in the
Tewah Alluvial Gold Project; and b) a 2% gross diamonds
royalty on its Attawapiskat Diamond Project. Each
of these royalties can be repurchased by Waseco for
$500,000 at any time prior to the commencement of
commercial production or for $1 million at any time
prior to the 1st anniversary of commercial production.
In conjunction with this transaction, Diadem has agreed
to forego all of its other interests in the Tewah
Project and Waseco has agreed to first offer its interest
in the Attawapiskat Diamond Project to Diadem should
it sell or joint venture.
|In a related but separate private transaction,
private investors, including Waseco President Richard
Williams, have agreed to purchase from Diadem 2,890,000
common shares and take an assignment of a Demand Note
(the "Note") for $225,000 for an undisclosed
consideration. Diadem will retain a 500,000 share
position in Waseco. The investors have further agreed
to convert the Note into shares of Waseco at a price
of $0.10 per share (i.e. 2,250,000 common shares).
These shares will be subject to a one year hold. The
investors have also agreed to advance the company
$25,000 by way of shareholder loans in order to meet
its short term working capital requirements.
|Waseco has also agreed to issue 1,160,000
common shares to Pt. Mas Bumi, an Indonesian company,
in full settlement of services performed in Indonesia
over a number of years. These shares are also being
issued at $0.10 per share, and will be subject to
a one year hold.
|Jay Richardson, Director and Secretary
Treasurer said: "We are very pleased to see these
steps being taken to clean up Waseco's balance sheet
with a resulting improvement also in Waseco's cash
position. While this substantially reduces what has
historically been a very strong relationship between
Waseco and Diadem, both companies stand to benefit
from these transactions. We would like to take this
opportunity to thank Diadem for their support over
the years and also to welcome the new investor group
who have indicated that their intention is to be long
term shareholders and assist Waseco in identifying
new opportunites as well as realizing on existing
|Waseco Resources Inc. is a Canadian exploration
company currently listed for trading on the TSX-Venture
Exchange. The above noted release has not been reviewed
for acceptance by the Exchange. Certain of the transactions
referred to herein are subject to regulatory approval.
This release may contain forward looking statements,
the realization of which are subject to various uncertainties.
|On Behalf of the Board Of Directors