<VBG> Chucktout was protective, like here I attempted to be:Yes, Richie and all as I said there, I shoiulda - coulda- woulda and the Big Nugget was a LIE there...dare I also say in the GROUND of Snad and Clay and ...SILICIA:
Message 6461493
Message 6461493
siliconinvestor.com
sec.yahoo.com
Mining Business
Mining and Energy International Corp./Liberty Hill Mine -
On September 2, 1997 the company's subsidiary, Mining and Energy International Corp. ("MEICO") entered into two agreements with "Big Trees' Trust" and "Naylor 1996 Charitable Remainder Trust under date of December 30, 1996," of Applegate, California (collectively, "Big Trees Trust") concerning the Liberty Hill Mine in Nevada County, California. Under the first agreement MEICO agreed to lease ten unpatented mining claims, consisting of about 200 acres of the Liberty Hill Mine, for thirty years. Under the second agreement, MEICO acquired an option to lease 109 other unpatented mining claims, consisting of approximately 1,750 acres of the Liberty Hill Mine, for a nominal option price. Big Trees Trust is controlled by Ray Naylor, who for many years was an officer of the Company's Century 21 mining subsidiary.
Under the terms of the lease agreement, MEICO agreed to lease the subject mining property for thirty years, with an option to terminate the lease without penalty. MEICO agreed to pay the out-of-pocket costs of operating the mine. In addition to these out-of-pocket expenses MEICO agreed to pay Big Trees Trust a nonrefundable advance against royalties of $40,000 per month (or 15% of the ores mined and sold, whichever is greater). As of September 30, 1998 MEICO had expended a total of $2,130,400 in out-of-pocket expenses to bring the mine into operation. In addition, to these expenses, MEICO has paid Big Trees Trust a total of $955,000 in advance royalties. Capital expenditures on the mine amounted to $433,399. Thus, total expenditures of all kinds through September 30, 1998 were $3,518,799. An additional $33,800 was spent on Century 21 mining equipment used at the Liberty Hill Mine.
Development of the Liberty Hill Project began in the winter of 1996. MEICO contracted with Ray Naylor to be the operator of the mine and to develop the project. Beginning in the summer of 1996, Ray Naylor assured MEICO that the mine was on the verge of production. However, for one reason or another, including inclement weather, inadequate water purification equipment, unanticipated clay content of the ore, etc., Mr. Naylor never actually brought the mine into operation. Therefore, in the fall of 1997 MEICO began to suspect that Mr. Naylor was unable or unwilling to bring the mine into production. On March 5, 1998 TVCN and MEICO sued, inter alia, Big Trees Trust and Ray Naylor in a dispute over the lease and operation of the Liberty Hill Mine. In its complaint MEICO alleges that it was fraudulently induced to enter into the mining lease and that Ray Naylor breached his contract to operate the mine on MEICO's behalf in a good and miner-like fashion. MEICO and TVCN claim damages in excess of $3.5 million. While no answer has been filed in the case, Mr. Naylor has informed MEICO that he believes it is in default under the lease and has served a notice of termination of the lease on the Company. On May 20, 1998 the Court entered an order on the parties' stipulated motion submitting the matter to binding arbitration. The parties have agreed to the appointment of Mr. Murray Richtel of the Judicial Arbiter Group, Inc. as the arbitrator in this matter, and an arbitration hearing has been set for September 10, 1998. The arbitration proceeding is in its initial stages, and discovery is proceeding. At this preliminary stage it is not possible to predict with any certainty the probable outcome of this matter. However, TVCN intends to prosecute its claims vigorously.
Century 21/Mountain House Mine
The Company acquired a controlling interest in Century 21 Mining, Inc. in December 1989. Century 21's principal asset is the Mountain House Mine. The mine is not yet in operation. The status of this mine has not changed since the last fiscal year. For more information, see the Company's previous annual reports, which are incorporated herein by reference
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