LTD

This won't affect CIVC in the least, except maybe in a positive way as the partnership is strengthened. It has all the hallmarks of a reverse takeover of Union Gold by SPE. There was a lot of talk a few months ago of SPE launching on TSX.V, but it never came to pass, I think because SPE was unable to find the necessary financial backing.

A reverse takeover is another way that private companies can gain a public listing - they find a company which has hit hard times, and allow that company to take them over. The shareholders of the failing company are only too pleased to find their investment has been moved into a company with better prospects. CIVC gained its public listing with just such a reverse takeover of TKO Resources. The whole process took from March 6 1998 to July 26th 1999 - so it is not necessarily quick, but it will give greater liquidity to their shares. Perhap, if this can be presented as a 'done deal' except for the paperwork, SPE will be able to raise equity funding to help them develop Shoal Point. Potential investors are more likely to put money into a company if they know they will be able to trade their shares on the markets.

What's the betting that the name of Union Gold will change to something close to Shoal Point Energy once the takeover has been effected?

Regards

Dunnock