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Gold/Mining/Energy : Birim Goldfields Inc. (BGI-T)
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To: Brian MacDonald who wrote (297)9/27/1999 9:57:00 PM
From: Brian MacDonald  Read Replies (2) of 922
 
Following up on my earlier post:

On Sept 24, 1999, John Kaiser notes (paraphrased):

- ' Birim has accepted a royalty deal from Ashanti on part of the Dunkwa concession in Ghana that will result in the injection of at least US 4-5 million into Birim's treasury over the next 6 months';

- 'On assumption that the deal will close as expected in 2-3 weeks, I rate Birim a top priority bottom-fish buy';

- 'If the study confirms that Mampon contains 175,000 ounces in oxide ore grading 5.0 g/t gold and recoverable through open pit mining, birim would receive $US 4.75 million. Combined with the other payments this would result in a cash injection of $US 6,250,000 or about $C 9,500,000 or $0.35/share based on 27 million shares fully diluted';

- 'the same royalty scheme would cover any additional oxide zones discovered on the 40 sq. km. portion Ashanti has optioned out of the 230 sq. km. Dunkwa concession';

- 'the deal is a lucrative one for Ashanti because it limits the degree that Birim can participate in a rising gold price. Birim will receive $US 0.20 extra for every $1 gold trades above $US 300.00.'

- management has a three pronged strategy:
1. 'drill the untested geochemical anomalies generated by 24,000 samples battle Mountain took on the Dunkwa concession';
2. 'resume aggressive exploration on the Bui concession ... a project with company making potential';
3. 'take a more active role in Ghana ... taking over prospects that would shine in a new market cycle that have been left behind by Canadian juniors who fled the country'.

'By early 2000 a speculation cycle driven by the three pronged strategy should be underway.'

Note: this is not a verbatim transcript. Rather I have paraphrased certain portions of the release. I trust that in doing so, I have not altered the essence of the message.

Bottom line, he is very supportive of the deal. Now we need to wait and see if the market agrees.

Brian
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