DENVER, COLORADO - MAY 21, 1997 #97-012
6:00 PM MST
CONSOLIDATED NEVADA GOLDFIELDS ANNOUNCES
RESULTS FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
AND AGREEMENT TO PURCHASE ELECTRA GOLD LTD.'S
ASSETS AT AURORA MINE
Six Months Ended
December 31,
1996 1995
Ounces of Gold Sold 20,603 14,955
Ounces of Silver Sold 598,097 -
Copper Pounds Sold 1,620,626 -
Revenue (000s) $ 11,456 $ 4,907
Net (loss) (000s) $ (10,991) $ (1,466)
Net (loss) per Share $ (0.14) $ (0.03)
Consolidated Nevada Goldfields Corporation announced that during
the six months ended December 31, 1996, it reported a net loss of
$10,991,000 or $0.14 per share on revenues of $11,456,000 compared
to a loss of $1,466,000 or $0.03 per share on revenues of
$4,907,000 for the six months ended December 31, 1995.
The increase in revenues for the six months ended December 31, 1996,
were primarily the result of the Company's acquisition of four
operating mines in Mexico on October 10, 1996. The increased
loss forwards for the six months ended December 31, 1996, was primarily
attributable lower than ancitipated production levels at the Company's
Nixon Fork and Pachuca mines. The Company
previously announced the change in its year end from June 30 to
December 31, which became effective at the end of 1996.
Accordingly, the Company is reporting audited results for the six month
period ending December 31, 1996.
Agreement to Purchase Electra Assets
The Company stated that it signed an agreement with Electra Gold Ltd. (EGL),
Vancouver, British Columbia, to complete the acquisition of EGL's
assets consisting of open-pit-mineable gold deposits adjacent to
the Company's Aurora mine near Hawthorne, Nevada. The agreement
calls for payment of $2 million, of which, $1 million would be in
cash and $1 million would be in common stock of the Company
based on the TSE closing price dated May 15, 1997 and the delivery of
EGL's assets free and clear of all encumbrances and liabilities.
The purchase, which is contingent upon the successful completion of a
diligence review by the Company as well as receipt of regulatory approval,
would add over 150,000 ounces of gold to the Aurora reserve and extend the
life of the operation by more than seven years.
Consolidated Nevada Goldfields Corporation is a Denver based
multi-national mining company with six producing mines and over 1,300
employees. The Company has proven and probable reserves of
560,000 ounces of gold, 47 million ounces of silver and
27 million pounds of copper. The Company currently trades
on the Toronto exchange under the symbol KNV, on NASDAQ under
the symbol KNVCF and on the Stuttgart, Frankfurt and Berlin
exchanges, under the symbol CNV.
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