THETFORD MINES, QUEBEC -- 07/25/07 --
Asbestos Corporation Limited (TSX: AB).
Mazarin's current activities in the chrysotile sector are carried out through Asbestos Corporation Limited ("ACL") and 9075-6453 Quebec Inc. ("9075"). These two subsidiaries are partners in LAB and Company, Limited ("LAB"), a limited partnership created in 1986 to operate the chrysotile mines in the Thetford Mines area. By virtue of this agreement, the limited partnership has the exclusive right to mine, occupy and operate the mining properties and equipment for the partners.
Taking into account the difficult economic conditions over the last few years in the chrysotile sector, with the agreement of all the partners and of LAB Chrysotile Inc., the general partner of LAB, LAB and LAB Chrysotile Inc. filed, on July 25, 2007, a notice of intention to submit a proposal to their creditors under the Bankruptcy and Insolvency Act. This Act grants LAB a period of 30 days to submit a proposal.
Given the uncertainty as to the issue of the steps being undertaken by LAB, Mazarin and its subsidiaries have accelerated a study of the various scenarios it could undertake to develop their properties and assets, excluding the direct operation of the mines by ACL or 9075. Possibilities could involve selling some of the land, buildings and mining equipment, or setting up other partnerships in order to maximize the value of these mining assets and properties.
Contacts:
Asbestos Corporation Limited
John LeBoutillier
418-338-5195
