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Wed Jun 19, 2002
Pan American And Corner Bay Agree To Revised Merger Terms
Vancouver, British Columbia .... Pan American Silver Corp. (NASDAQ: PAAS; TSE: PAA) and Corner Bay Silver Inc. (TSE: BAY) announce that the terms for their proposed merger (announced May 21st) have been modified. Under the new terms, each Corner Bay share will be exchanged for 0.385 common shares of Pan American plus 0.1925 of a Pan American warrant. Each whole warrant will allow the holder to purchase a common share of Pan American for a price of C$12 for five years. The warrants will, subject to regulatory approval, be listed on the Toronto Stock Exchange. Under the new plan of arrangement, no provision is made for the creation and distribution of shares in a new exploration company. Since Corner Bay currently has 20.8 million shares on a fully diluted basis, Pan American is expected to issue approximately 8 million common shares and approximately 4 million share purchase warrants to complete the transaction. Completion of the merger is subject to satisfactory fairness opinions and the signing of a definitive agreement, expected by late June, and to regulatory and shareholder approvals, anticipated in early September.
For further information, please contact:
Ross J. Beaty, Chairman or
Rosie Moore, VP Corporate Relations, Pan American
(604) 684-1175
Peter Mordaunt, Chairman or
Steve Brunelle, Vice President, Corner Bay
(416) 368-6240
www.panamericansilver.com
CAUTIONARY NOTE
Some of the statements in this news release are forward-looking statements, such as estimates of future production levels, expectations regarding mine production costs, expected trends in mineral prices and statements that describe Pan American's or Corner Bay's future plans, objectives or goals. Actual results and developments may differ materially from those contemplated by these statements depending on such factors as changes in general economic conditions and financial markets, changes in prices for silver and other metals, technological and operational hazards in Pan American's mining and mine development activities, uncertainties inherent in the calculation of mineral reserves, mineral resources and metal recoveries, the timing and availability of financing, governmental and other approvals, political unrest or instability in countries where Pan American or Corner Bay are active, labor relations and other risk factors listed from time to time in Pan American's Form 40-F and Corner Bay's Form 20-F. |
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