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Establishment of Pacific Mining Corporation

Document date:  Fri 13 Mar 1998
Published:  Fri 13 Mar 1998 00:00:00
Document No:  144529
Document part:  A
Market Flag:  Y

CAMELOT RESOURCES NL                          1998-03-13  ASX-SIGNAL-G

HOMEX - Perth                                                         

The Directors of Teck Corporation and Camelot Resources are pleased
to announce their agreement in principle to establish a new business
to be known as Pacific Mining Corporation (PacMin) by consolidating
ownership of all assets that are presently owned by Tack Corporation
and Camelot Resources in Australia into Camelot.

Teck Corporation will be issued with 343.2 million additional fully
paid ordinary shares, plus 193 million redeemable convertible
preference shares in consideration of the purchase of its 70%
interest in the Tarmoola Joint Venture and its 6% stake in Northern
Gold, so that it will hold approximately 75% of the ordinary issued
capital of PacMin.

Teck and Camelot will also seek to reach agreement on the transfer to
PacMin at some date in the future of the existing exploration
activities of Teck in South-East Asia.

PacMin will have gold production from its wholly owned Tarmoola and
Mt Gibson Mines and will continue to pursue the potential to commence
production through the development of the Burnside Project in the
Northern Territory, held through its subsidiary Northern Gold NL.
Total gold production for the year from Tarmoola and Mt Gibson to
December 1998 is forecast to exceed 180,000 ounces.

The strategy for PacMin is to take advantage of current market
circumstances to seek growth through both exploration success and the
acquisition of advanced exploration properties and operating
projects. PacMin will also seek to participate in the rationalisation
of the Australian resources sector through mergers with other
companies that have quality assets.

It is proposed that Teck will appoint three of its senior executives,
Dr Norman Keevil, Dr Klaus Zeitler and Mr Mike Lipkewich to the
PacMin Board of Directors.

The senior management of the Company will be formed from the combined
executive teal-as of Camelot Resources and Teck Corporation, with Mr
Steven Dean continuing in the role of Managing Director and Chief
Executive Officer.

The restructure is subject to fulfilment of a number of conditions
including approval by Camelot shareholders, FIRB approval, agreement
on the restructure and establishment of new gold hedging facilities
in PacMin, there being no material adverse change in the assets
concerned prior to completion, and receipt of all necessary waivers
from the Australian Stock Exchange and the Australian Securities

Directors will also take this opportunity to propose to shareholders
a consolidation of capital on a 1 for 5 basis and a conversion of
Camelot Resources from a no liability company to a limited company.

A meeting of shareholders of Camelot Resources will be called shortly
to consider resolutions necessary to affect the reconstruction,
including an Independent Expert's Report advising shareholders of
Camelot on whether the terms of the proposal are fair and reasonable
to non-associated shareholders. It is anticipated that the
shareholders meeting to consider the reconstruction and establishment
of PacMin will be held before 30 April 1998.

Enquiries to:
Dr Klaus Zeitler                      Mr Steven G Dean
Telephone: 0011 1 604 687 1117        Telephone: (08) 9321 0616

Mr Jim Craig 
Telephone: (03) 95655 8125