International Wayside Gold Mines Ltd.

International Wayside Gold Mines Ltd.

May 28, 2009 09:20 ET

International Wayside Gold Mines Ltd.: Court Approves Cross Lake Plan of Arrangement Including Proposed QR Mine & Mill (900 tpd) Acquisition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 28, 2009) - International Wayside Gold Mines Ltd. ("Wayside") (TSX VENTURE:WYG)(FRANKFURT:IWUB) is pleased to announce further to News Release 09-09 dated May 19, 2009, that as previously stated, the creditors of Cross Lake Minerals Ltd.("Cross Lake") approved an amended and restated plan of compromise and arrangement (the "Plan"), which amended, in a number of technical respects, the plan of compromise and arrangement filed on April 7, 2009 pursuant to the Companies' Creditors Arrangement Act and B.C. Business Corporations Act.

On May 25, 2009, the British Columbia Supreme Court issued the final order to approve the Plan, which among other things, allows for a subsidiary of Cross Lake to hold all of Cross Lake's interest in the QR Mine and Mill (the "QR Subco"). Wayside intends to proceed to enter into an agreement ("the Agreement") first announced on February 04, 2009 and updated April 9, 2009 whereby Wayside will purchase the QR Subco. Completion of the Agreement is subject to the satisfaction of a number of conditions including, but not limited to, completion of due diligence and obtaining the necessary shareholder, regulatory and Court approvals.

The 900 tonne per day QR Mill, which was fully operational until February 2009 (now on care and maintenance), is a CIP mill designed for an output of 70,000 ounces of gold per annum for that location. The mill is located 110 km by road from Wayside's Cariboo Gold Project and proposed Bonanza Ledge Mine. Following a positive feasibility study in 1994, Kinross Gold Corp. constructed the QR Mill with capital costs estimated at over $40 million.

Cross Lake commenced operations at the QR Mine in 2007 after spending over $34 million in the preceding 24 months on project acquisition ($4.3 million), exploration & development ($20 million) and refurbishing the mill facilities ($10.3). Cross Lake expended an additional $3 million on asset retirement obligations, including having BC Hydro bring three phase power to the project. It is Wayside's objective to process material from its proposed Bonanza Ledge Mine at the QR Mill, in addition to recommencing operations at the QR Mine.

The Company initiated operations in the Cariboo District in 1994 and since that time has focused on the exploration and development of its gold properties. Mineral tenures in the Historic Cariboo Goldfields encompass approximately 1,065 square km (106,484 hectares) over a 60 km long by 20 km wide belt. In the Barkerville Gold Camp, 101 creeks have reported placer gold production. Recorded gold production from the area totals more than 3.8 million ounces, including an estimated 2.64 million ounces from placer mining and 1.23 million ounces from lode mining.


J. Frank Callaghan, President and CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • International Wayside Gold Mines Ltd.
    Andrew H. Rees
    604-669-6463 or Toll Free: 1-800-663-9688
    604-669-3041 (FAX)