AGM (VSE) AROYF (OTC) Ag Armeno Mines & Minerals Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : AGM (VSE) AROYF (OTC) Ag Armeno Mines & Minerals

AGM 175.24

-0.6%

Jan 9 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Richard Mazzarella who wrote (289)	7/19/1999 6:00:00 PM
From: Ed Fishbaine	Read Replies (1) of 317

Richard and all: Recent developments in the saga of Armeno, Newmont and Merukh are interesting and portentous: A complaint against Newmont was filed with the SEC in late January 1999. The complainants were Lebong Tandai Group of Companies/ Gideon Minerals Inc. and their Officers , Co-Chairman Leonard Young and Preident and CEO T.L Maierle. Lebong is an Indonesian corporation which claims to "hold the Indonesian Mining Titles and underlying mineral interests in real property for which Newmont has claimed ownership." Dr. Jusuf Merukh is the Chairman of Lebong and co-Chairman of Gideon Minerals. The gist of the complaint is that Newmont has misrepresented itself in its Securities filings as having an ownership interest in not only the BATU HIJAU but also the Minahasa Mine, an Indonesian property now in production. The complaint alleges that Newmont has only an "operating interest under Contracts of Work". The complaint further states that "Newmont's share holder interest in the operating company would become of little value" if the holder of the Mining Titles (Lebong etal) changes operators and/or the Goverment terminates the Contracts of Work. In other words, the complaint alleges that Newmont does not own the mineral rights; and although its 80% interest in the mine is a valid interest it can be terminated either by Lebong or the Government. In other words Newmont's interest could be confiscated. Whether or not there would be compensation and to what degree is not indicated. The complaint wants the SEC to "sanction" Newmont, issue a cease and desist order from future claims to any title in Minahasa and Batu Hijau, require Newmont to issue a corrective disclosure regarding the ownership of the Lebong group of all Mining Titles, disgorge all profits resulting from its violations and issue an injunction against future violations. ---------------------------- Why is Merukh declaring war on Newmont? It can only mean that he believes he has been treated badly by Newmont and that he wants to get them over a barrel. Recall that last year Merukh was delighted to work a deal with AGM to vend 90% of his interest in Batu Hijau into AGM for a controlling share position plus $2 million. Likewise AGM saw this as a grand opportunity. Odds are Newmont squashed the deal. Aside from other complaints Merukh may have against Newmont, this disruption of the deal with AGM may have been based on Newmont wanting direct control over Merukh which it would lose if AGM owned the interest. This alone is enough to account for the attack by Merukh against Newmont. Should Merukh prevail will the deal with AGM be re-started? If so, this is a big positive for AGM. Thoughts and comments welcomed.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next