Wednesday April 19, 10:13 am Eastern Time
Company Press Release
McKenzie Bay International Ltd Purchases Kelsey Lake Diamond Mine From Redaurum Ltd
FT COLLINS, CO--(BUSINESS WIRE)--April 19, 2000--McKenzie Bay International Ltd ('MKBY' OTC-pinks)(OTCBB:MKBY - news) has purchased all of the issued and outstanding shares of Diamond Company NL, a wholly owned subsidiary of Redaurum Limited ('RRK' TSE), effective April 14, 2000 pursuant to a previously announced agreement between the parties. McKenzie Bay assigned the purchase of Diamond Company to its wholly owned subsidiary, Great Western Diamond Company.
Purchase price included 122,200 McKenzie Bay Common Shares and the assumption of all Diamond Company indebtedness totaling US$1.418 million. Although Diamond Company is in Chapter 11 of the U.S. Bankruptcy Code, McKenzie Bay successfully concluded settlement arrangements with major creditors on April 14, 2000 to complete the purchase from Redaurum. McKenzie Bay has petitioned U.S. Bankruptcy Court for the District of Colorado to withdraw Diamond Company from Chapter 11 proceedings.
Diamond Company NL owns the fully permitted open-pit Kelsey Lake Diamond Mine, Americas first and only commercial producing diamond mine, located in the Colorado and Wyoming border region between Ft Collins, Colorado and Laramie, Wyoming. Other Diamond Company assets include the trademarks ``Colorado Diamonds®'' and ``Kelsey Lake Diamonds®'' under which only diamonds recovered from Kelsey Lake may be marketed.
Kelsey Lake Mine assets include Colorado and Wyoming mining permits, mining leases, equipment and a diamond recovery plant and building. Mining leases encompass nine known kimberlites, three of which have been tested for their diamond content. Mining is permitted from the KL-1 & KL-2 kimberlite pipes each 10.5 acres in size situated 1/2 mile apart. Diamond recovery equipment includes a 225-tph diamond recovery rotary pan plant with two 14-foot 'coarse' pans and two 14-foot 'fine' pans.
Drilling has shown continuity of highly weathered kimberlite ore to 350 feet, remaining open to depth, indicating a minimum resource of 16.9 million metric tons. Grades of 3.4 to 4.6 carats per hundred ton excluding diamonds smaller than 2.0 mm, greater than 25 mm and 'coated diamonds' were obtained from a Sortex diamond X-ray sorting machine.
Please visit our website http://www.mckenziebay.com
or email us: email@example.com
John Sawarin, 519/439-9392
McKenzie Bay International Ltd
Gary Westerholm, 810/220-5948
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