A CONSUMERS GUIDE TO UNSCRUPULOUS MINING COs Message Board

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Gold/Mining/Energy : A CONSUMERS GUIDE TO UNSCRUPULOUS MINING COs

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To: Tomato who wrote ()	6/10/1997 4:29:00 PM
From: Shirley Owen	of 20

Hey Tomato, This one fits her like a glove. Only problem is that someone reading it might start playing violins for these "poor" guys. Do you recognise it? Todays Financial Post - Stock Options El Misti REDUCES Stock Option Price ---- El Misti joins Winspear Resources Ltd. in making the move among mining companies. "The whole market has taken a serious tumble in the wake of [the] Bre-X [Minerals Ltd.] mess," said Winspear president Randy Turner. In a decision that will require shareholder approval in July, Winspear reduced the price of options available to employees and directors to $1.62 from $3.66. "We see more of them [repricings]whenever the market turns," said Warren Funt, vice-president of corporate finance services at the Vancouver Stock Exchange. At El Misti, an employee referred all questions to senior management who could not be contacted. "We knew it would probably cause a little bit of alarm," the employee said. Mackenzie said reducing options prices sends the wrong message to shareholders. "It's an incentive plan [and] what's the incentive if the bar keeps getting lowered? It becomes a guarantee, instead of an incentive." Mackenzie said the public can expect to see more repricing of options if the market moves into a bear phase and share prices slip below the exercise price of options. Tinkering with incentive plans gives insiders an unfair advantage over shareholders, he added. "No one can lower the price that they bought their shares at." El Misti's move saw it cancel all outstanding options for directors and employees, most of which were priced at $4.05 when issued just three weeks ago. Continued ......

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