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Gold/Mining/Energy : JAB International (JABI)

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To: sailor who wrote (2524)	1/6/1998 12:48:00 PM
From: D.McQ	Read Replies (1) of 4571

Sailor: IMO, this news release tells the world that the JV has met with BCMD examined their records and determined BCMD is worth investing $9million in. From what I understand, according to their JV agreement if they weren't satisfied they wouldn't have made this payment. This tells me more than all the speculation that has been going on. As I understand it. Their $9 million is to be used to get mines into production and at the end of 30 months they get 30% of only the mines their money was used to develop. So if only 2 or 3 mines are all that are developed at the end of the 30 months, then that is all they get a 30% interest in. The JV has to be pressuring BCMD to expand quickly into as many mines as possible. They have only 30 months before it is determined how many mines they get an interest in. I think BCMD would have had to prove to them that in the past month or so they have developed Business plan that Sterling approves of. I bet they also had to prove to them that they have found gold bodies. Notice the part of the news release that says they drifted over Pillar 4 to determine its width of 30ft. They also found 2 new virgin ore blocks with more visible gold. I would say they are doing this to help prove to Sterling the amount of gold available. BCMD on the other hand will want to get as much gold out of the ground and milled as fast as possible within the next 30 months to keep from sharing the 30% with Sterling. To me it is like they are in a race to see who can benefit the most which in the end will mean the overall company will come out the winner. Its a win/win situation for us shareholders. The faster BCMD expands and develops the 9 mines, the higher their production numbers will be and the more profits will hit the bottom line which will mean the EPS will grow faster. That will equal a higher share value for us shareholders. Darlene BTW here is the post where popg explains the JV deal. I don't have the time to find all the other ones that address it but there are more on this thread and on Yahoo. Message 2883425

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