/NOT FOR RELEASE OR DISSEMINATION INTO THE UNITED STATES/
TORONTO, July 29 /CNW/ - CITADEL GOLD MINES INC. (CGM.H: NEX Exchange).
Citadel Gold Mines Inc. (the "Company") announces that, subject to NEX Exchange approval, it intends to redeem all of its outstanding First Preferred Shares, Series II on July 31, 2008 (the "Redemption"), which shares are indirectly owned by Dr. Bernard C. Sherman, a principal shareholder and related party to the Company.
The aggregate redemption purchase price of $241,734 to be paid to Dr. Sherman will be funded by the issuance of 2,544,568 common shares of the Company.
Following completion of the Redemption, Dr. Sherman will control, directly and indirectly, approximately 59.5% of the Company.
The terms of the Redemption were negotiated between the Company and Dr. Sherman and were approved by the board of directors, who determined that the timing and terms of the Redemption are in the interest of the Company and reasonable in the circumstances.
The NEX Exchange has neither approved nor disapproved of the information contained herein. The statements used in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. These statements reflect management's current expectations regarding future events and speak only as of the date of this press release. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual events or results will be consistent with these forward-looking statements. Except as required by law, the Company does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking information, whether as a result of new information, future developments or otherwise. Readers are therefore cautioned not to place undue reliance on any forward-looking statements.