Dean et al re Dean's query:
Hi Greg. Now would seem the right time to start releasing strong drill results into the strength of the gold market now. ING, BGO,and a few other well managed companies have had a nice price rise in in this attempted bullish gold run, after sliding to year lows recently.
In any case I'm holding my postion of YRI shares until news is out and a deal or no deal on the COW's is announced.
Also, what is the short position on YRI, and doesn't Westmin have a stake in our company along with the other principal holders?
Thanks
have a good weekend
DEAN:
Sorry for the delay but I've been away at a geology and investment conference at Queen's University in Kingston, Ontario and I've just been able to pick up my email.
As you know, I've just announced encouraging VMS/Cu/Zn results from drilling in Washington state. This is a good target and we have received some queries from potential partners. I've no idea about where that might lead, especially when drilling is done for the season.
As for the COWs, here are a few quotes from the Oct. 10, 1997 Jakarta Post.
"Soeharto expected to approve seventh generation COW this year.
JAKARTA: (JP): Director General of Mining at the Ministry of Mines and Energy Adjat Sudradjat expected President Soeharto would approve this year (sic) the controversial seventh generation contracts of work (COWs) for the development of the country's mineral resources. He said presidential approval of the COWs was the last requirement to be fulfilled before Minister of Mines and Energy I.B. Sudjana put his signature on them. "We hope the signing of the draft COWs can take place by the end of the year," Adjat told reporters today."
The article goes on to note that 164 applications had been made... 31 companies since withdrawn "due to financial difficulties or after finding that the concession areas they applied for contained inadequate minerals."
The article says the government is also processing 12 coal development applications. It repeats the statement made in earlier reports that the delay in the seventh generation signings was partly due to "press reports stating that House members had received illegal money from the Ministry of Mines and Energy to smooth out deliberations. The House only agreed to continue deliberations after the ministry publically denied the report."
The article talks about the ministry "consider(ing) some points of recommendation before further processing the COWs. The existing law does not give the House the right to change the draft COWs, but only provide recommendations and advice."
The article discusses the issue of the size of some applications, noting Yamana and Internatiuonal Pursuit. It was incorrect in its description of what we own, over-estimating it almost 25 percent.
Our own information directly from the Ministry is that this is not a major issue.
Overall, this is at least the fifth source for our beleif that our COWs will be signed in the next couple of months. Not a sure bet but another step in the right direction.
As for the short position on Yamana, I'm not aware that anyone is shorting us right now. There were a number of people doing it six months ago but I don't think there's much out there now.
Yes, Westmin is a shareholder: 200,000 shares @ $5.00.
I hope this helps.
Greg
PS (FWIW)
A number of people have asked about insider trading recently and I've done my best to keep you up-to-date on that. Although I've said recently I can't do much myself, I've just converted a significant part of my RRSP (for non-Canadians, this is the tax-sheltered retirement vehicle available to Canadians) to purchase Yamana shares. ( I had a five-bagger on Royal Plastics and cashed in.)So you can add me to the list. Simply put, I think we've bottomed out.
Also, we've just seen new, good newsletter coverage from Brian Fagen, Sudhir Khannas (Resource Indicator)and Chris Bunka (The Outsider's Overture). All three were noting our weak numbers in recent months but predicted a good upturn over the coming few months.
I hope this helps.
Greg |
