investors > press releases
Pacific Bay Flow-Through Offering Not Proceeding
Vancouver, British Columbia, December 20, 2007 - Mr. David Brett, CEO, Consolidated Pacific Bay Minerals Ltd. (TSX Venture: CBP, the "Company") reports that the previously announced $700,000 flow through share offering with the MineralFields Group is not proceeding due to market conditions. Management believes the Company's working capital position is adequate and a further lowering of the offering price to reflect current market conditions was not warranted. Funding options for the Company's Papaskwasati Project in Quebec will be reviewed in the new year.
Interpretation and review of the Company's airborne geophysical survey on the Papaskwasati Project in Quebec is ongoing and new information will be reported as it becomes available. Also, Strateco Resources Ltd. is exploring the Company's Otish Mountains uranium prospects under a previously announced option agreement.
Also, the Company is in receipt of a Promissory Note from Cusac Gold Mines Ltd. ("Cusac") in the amount of $341,000 with respect to advances made by the Company to Cusac in September and October of 2007 (the "Note"). Cusac is a related party to the Company by way of common directors trading on the Toronto Stock Exchange. Cusac has a long history of advancing money to and investing in Pacific Bay. Cusac was initially advanced the funds on a short term basis bearing no interest or fixed terms of repayment. Cusac's financial situation changed and as a result the advances have been converted into a loan. The Note bears interest at the rate of 8% per year and is payable in four equal instalments commencing June 14, 2008 and ending March 14, 2009. As backup for the Note, certain principals of the Company have entered into a subordination agreement with the Company and Cusac whereby the principals have placed the Company's Note in priority over $221,250 (plus accrued interest) owing to them from Cusac under secured convertible debentures they acquired from Cusac in 2006. On December 19, 2007, Cusac announced signing of a definitive merger agreement with Hawthorne Gold Corp whereby Hawthorne will acquire all the shares, assets and liabilities of Cusac, including the Note, and Cusac has agreed to use its best efforts to have Hawthorne pay off the Note at the closing of the merger, expected on or before April 15, 2008.
On Behalf Of The Board Of Directors
David H. Brett
CEO
Consolidated Pacific Bay Minerals Ltd.
For Further Information Call
In Canada: 1-800-670-6570
In the USA:1-800-665-5101
Local: 604-682-2421
E-Mail: ir@pacificbayminerals.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.