St. Genevieve Resources Ltd.

St. Genevieve Resources Ltd.

November 02, 2005 11:30 ET

St. Genevieve Resources Ltd.: Offer Received for the Purchase of copper Assets for US$5.5 Million

MONTREAL, QUEBEC--(CCNMatthews - Nov. 2, 2005) - STE. GENEVIEVE RESOURCES LTD (CNQ:SGVL) announces that it has received an offer to purchase its US subsidiary, SGV Resources Inc, from the Fortress Investment Group on behalf of its clients, for the cash sum of US$5.5 Million. Fortress is a New York based Hedge Fund / Private Equity Fund manager.

The proposed transaction contemplates Ste. Genevieve retaining a 1.5% Net Smelter or Gross Proceeds royalty on the Emerald Isle and Zonia Mine properties both located in Arizona USA.

Fortress will lease back to Ste. Genevieve the Kennedy Canyon gold prospect, the South Comstock gold prospect, and the Satellite copper prospect all located in Nevada USA, for the sum of one dollar and a 2% Net Smelter Royalty on the two gold properties and a 1.5% Net Smelter or Gross Proceeds royalty on the Satellite copper prospect.

A special general meeting of the shareholders will be held to approve the sale on December 15th and the transaction is set to close on the following day, December 16, 2005 subject receipt of the shareholders' approval.

Management and the Board of Directors have evaluated the offer and will recommend its acceptance by the shareholders at the forth coming Special Meeting of the Shareholders.

Fees relating to this transaction are due and payable on closing to Dominick & Dominick Securities Inc. of Toronto (3%), and CapitaPartners LLC of New York (5%).

In other matters, Michael Harrington has been appointed to the Board of Directors replacing Paul Parisoto and Harry Hodge who have resigned as directors of the Company due to their other substantial commitments. Michael is a Certified Public Accountant and has worked in the Mining industry for the last 40 years most notably with Cyprus Minerals Company's coal and base metal operations and was a financial consultant to a number major mining companies operating in the Former Soviet Union. Mike joins Denis Thomas (Mining Engineer), Denis Villeneuve (Geologist), Michel Cote (Corporate Finance) and Bryan Wilson (Geologist / Corporate Admin.)

Ste. Genevieve Resources Ltd. is a resource development company with its primary interests being the past producing Emerald Isle Copper Mine located in N.W. Arizona 18 miles NW of Kingman Arizona, and the past producing Zonia Copper Mine which is located approximately 15 miles north of Yarnell, Arizona.

Ste Genevieve Resources Ltd. is listed on the CNQ ( exchange under the symbol SGVL. There are 125,910,120 shares outstanding.

On Behalf of the Board

Bryan Wilson,

President & CEO

Neither the CNQ Exchange nor the TSX Venture Exchange have reviewed the contents herein nor have they passed upon the merits of the merits of the transaction proposed herein. Furthermore, the CNQ Exchange and TSX Venture Exchange do not accept responsibility for the adequacy or accuracy of this release nor have they approved nor disapproved the contents contained herein. Investors are cautioned that, except as disclosed in the materials to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Ste. Genevieve Resources Ltd. should be considered highly speculative.

Contact Information

  • St. Genevieve Resources Ltd.
    Bryan Wilson
    (416) 543-9945
    (416) 364-2753 (FAX)