Attention Business/Financial Editors:
Debt Settlement With Genoil Inc.
ST. GENEVIEVE RESOURCES LTD.
CDN : SGVE
MONTREAL, Feb. 16 /CNW/ - St. Geneviève Resources Ltd. (''SGV'') SGV is
pleased to announce the settlement of 5.9MM$ of debt owing to Genoil Inc., an
arm's length party, which was due April 1, 1999 in the following manner:
1. The issue of a 1.4MM$ debenture convertible into shares of SGV at a
price $0.20. The debenture will be convertible at the option of SGV
and will convert automatically on December 31, 1999. The debenture
will pay interest at the rate of 8% per annum, payable either in cash
or in shares of SGV at the option of SGV.
2. The issue of a 3.2MM$ debenture exchangeable into shares of KWG
Resources Inc. (''KWG'') at a price $0.40. The debenture will be
exchangeable at the option of SGV, and will be exchanged automatically
on December 31, 1999. The debenture will pay interest at the rate of
8% per annum, payable either in cash or in shares of KWG at the option
of SGV.
3. A private placement of shares of SGV in the amount of $450,000, at a
price of $0.10 per share.
4. SGV has sold to a third party 5,280,000 shares of Genoil Inc. for
proceeds of $528,000, which proceeds have been applied to the debt
settlement.
5. A balance of $450,000 is payable from the proceeds of SGV's Rights
Offering on the basis of $0.50 out of every $1.00 raised in excess of
$992,317. Any amount unpaid will be owed to Genoil Inc. at the latest
on December 31, 1999. This amount will bear interest at the rate of
8% per annum.
The above debt settlement is subject to SGV obtaining the necessary
regulatory approvals, including the approval of the Quebec and Ontario
Securities Commissions for the final settlement of its reorganization plan, by
no later than March 1st, 1999.
SGV is a mining exploration company currently trading (without quotation)
on the Canadian Dealing Network Inc. (CDN) under the symbol SGVE. SGV has
232,735,769 issued and outstanding common shares (including shares to be
distributed to creditors).
NO REGULATORY AUTHORITY HAS APPROVED NOR DISAPPROVED
THE CONTENT OF THIS PRESS RELEASE
-0- 02/16/1999
For further information: Denis Villeneuve, (514) 866-6001
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