Phrygian Mining Corp. Announces Control Acquisition and Board Appointments

Strategic Insights -

Phrygian directors and management are pleased to announce that Croesus, a New York-based global emerging market fund, has reached an agreement with Midas to acquire control of approximately 49% of the voting shares of Phrygian, representing 2,083,452 trading shares subject to a one-year hold period and 1,897,194 escrow shares. The transaction remains subject to regulatory approval. This move is consistent with Midas' strategy of developing business opportunities and attracting endorsement from a significant financing partner and an experienced management team to accelerate growth in shareholder value.

Key Takeaways:

  • Phrygian Mining Corp. has agreed to a control acquisition by Croesus, a New York-based global emerging market fund, with approximately 49% of the voting shares subject to a one-year hold period and 1,897,194 escrow shares.
  • Croesus has appointed three new representatives to the Phrygian Board of Directors, including Mr. Michael Beck, Managing Director of Rothschild Natural Resources Inc., Mr. Tom Griffis, President of Sikaman Gold Resources Ltd., and Mr. James Taylor, who assumed the role of President of Phrygian and Chief Financial Officer Mr. Edward Badida.
  • The Croesus fund has reviewed both the Sierra Leone diamond and Kyrgyzstan gold properties of Phrygian and agreed to conclude the transaction with Midas on the basis of this review.
  • Midas will retain three directorships of a total of six and will continue to aggressively expand Phrygian's resource base in Central Asia.
  • Dr. Charles McMillan, Chairman of Midas, will serve as Chairman of Phrygian and will be particularly active in developing Phrygian's interest in Central Asia.

Statistics:

  • 49% control acquisition by Croesus
  • 2,083,452 trading shares subject to a one-year hold period
  • 1,897,194 escrow shares
  • Three new representatives appointed to the Phrygian Board of Directors by Croesus
  • 15.9 million tonnes estimated exploitable reserves in Kyrgyzstan gold concessions
  • 4.87 grams per tonne average gold content in Kyrgyzstan gold concessions

Sources:

  • Phrygian Mining Corp.
  • Business Wire (August 29, 1995)
  • Vancouver Stock Exchange

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