Copper sure has been killed. Another miner to bite the dust>> Dakota Mining Corporation (Amex: DKT; Toronto)
(''Dakota'') purchased 83,600 ounces of gold to offset a portion of its hedge position relative to
the operating, Illinois Creek, Alaska gold mine. Dakota realized a gain of approximately $9.6
million which was immediately credited to the current indebtedness of $20.5 million with N.M.
Rothschild & Sons (''Rothschild''), reducing the debt to Rothschild to about $10.9 million. This
gain will be recognized over the life of the contracts during 1998.
Alan Bell, Dakota's President and Chief Executive Officer, stated, ''The Company is taking
advantage of the current low gold prices and its hedge position to reduce its total debt.''
Dakota is left with a remaining hedge position of 76,400 ounces at a weighted average price of
$347 per ounce, for delivery in 1999 and 2000. It is the Company's plan at this time that the 1999
and 2000 delivery dates will be brought forward to cover 1998 production at an adjusted,
estimated delivery price of about $315 per ounce.
Separately, Dakota has been advised by the American Stock Exchange (''Amex'') that it does not
fully satisfy all of the financial requirements for continued listing. While Dakota management
believes that the reduction in Rothschild debt will favorably impact Amex's ongoing evaluation of
the Company's continued listing eligibility, there can be no assurance that the listing will be
continued. It looks like Rothschild is calling in the chips!
Now, for something to cogitate on-- Rothchild pulled the plug on REA gold on Monday, DKT today. They will either get their money back, or they will own a bunch of mines, cheap. I think some reading between the lines is in order. You all know who the Rothchilds are?
They ARE the smart money.
Dakota has recently installed a home page on the Internet and its address is WWW.DKT
MINING.COM.
SOURCE: Dakota Mining Corporation
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