MIQ MANAGEMENT COMMENTARY
Good afternoon to you all.ÿ Pursuant to the press release announcing termination of the MIQ/Kinross joint venture at Railroad, Mirandor management has prepared the following commentary.
Secondly, AGORA has also arranged for a shareholder Q&A, as outlined below. In order to insure your question is received, kindly forward your questions to the e-mail address below. We can not guarantee that questions posted on bulletin boards will be forwarded to the company.
Regards,
AGORA Internet Relations Corp
agoracom.com
Dear MIQ shareholders,
Though we regret having to announce the termination of our joint venture with Kinross Gold Corp., we would like to assure Mirandor investors that MIQ is in very stable condition and now stands to benefit from this relationship as we move forward.ÿ To that effect, we would like to inform our shareholders of the following:
FINANCIAL CONDITION
As a result of our joint venture agreement with Kinross Gold, we are pleased to advise that all payments, fees and costs associated with the Railroad Project are current and paid through to August 31, 2000.ÿ As such, MIQ is at no risk of losing the property and in a good position to negotiate its future with potential partners or suitors.
We also wish to advise the company is able to sustain day to day operations well into 2000 without need for further financing.
PLANS FOR THE FUTURE
Given the current environment in the exploration and mining industry, raising amounts of money necessary to commence a major drill program in 2000 may be difficult.ÿ However, the environment for selling royalties in exchange for cash to companies such as Franco-Nevada and Royal Gold is more conducive.ÿ In fact, during a meeting in June of 1999, Royal Gold expressed an interest to provide such financing if Kinross was not a partner in the property.
Management has a preference towards royalty financing and will exhaust this option before searching for a new partner at Railroad.ÿ The company prefers this option and believes it is more beneficial to shareholders for several reasons, including:
- more control over drilling targets; and
- more control over release of drill results
On several occasions during our last joint venture, management abilities to raise further funds or meet with industry analysts was hampered by the lack of information from our property and the lack of ability to control it.
REASONS FOR TERMINATION
Due to the state of our industry, Kinross had expressed a desire to decrease its financial obligations to MIQ and the property as outlined under our agreement.ÿ MIQ management expresses a willingness to provide flexibility in this matter but could not, in good conscience, agree to the terms prescribed by Kinross Gold.
We also understand the Kinross exploration budget had been significantly reduced for 2000 and that spectacular results were being returned from the company's Hoyle Pond property.ÿ The combination led to fewer resources available for Railroad, to which we were not willing to agree.ÿ In short, we were not willing to be negotiated down on such a valuable property and shareholder asset.
CONCLUSION
As outlined in our press release, we have been advised by Kinross that drill results for 1999 will be delivered to us shortly.ÿ At this time, we have no indication as to the quality of the results.ÿ However, their "lump sum" delivery is indicative of the frustration management and shareholders of smaller companies often feel when in partnership with a senior producer.
Having said that, we are grateful for our joint venture with Kinross and pleased with the benefits derived as a result of this partnership.ÿ Specifically, MIQ now has over $2,000,000 of exploration results under its belt without having to give up any ownership of the property.ÿ This increased knowledge of our property can only lead to more informed and better drilling results when anticipated 2000 drilling commences.
Management wishes to advise that MIQ President, Gilles Laverdiere, will be out of the country on a pre-scheduled trip in the upcoming week.ÿ As such, he will not be available for comment until November 8th.ÿ However, AGORA has introduced and we have agreed that a Q&A session would be appropriate at this time.ÿ Therefore, management requests that all shareholders submit questions to AGORA, who will then summarize them for response upon his return.
Kindly forward all questions to GeorgeT@agoracom.com
Management does not anticipate release of drill results during his absence.ÿ As such, questions with respect to upcoming drill results should be withheld until such time as they are released.
Yours truly,
Gilles Laverdiere
President
Mirandor Explorations
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