Bearcat, Phil, Don. You've identified the issues. Cash, and alternative projects.
MGR had counted on having Bumbat generate cash to finance its projects. Other sources of cash, joint ventures, etc. are alternatives.
MGR had focused on gold in Mongolia, but had additional properties with base and precious metal potential in Canada. The Longtom Property is currently being acquired as to 50% by Alberta Star Mining. They will be expending a minimum $200,000 on this property in 1998. The Terra Silver Mine properties were acquired by MGR as to 50%, and we are currently reviewing alternative programs for it.
We have tried to acquire a bit of geographical and commodity diversity, as well as having joint venture partners advance our projects. This is working now, and we may expand on this in the next few weeks. It is simply drawing on the invested capital in a project, and it's the cheapest form of exploration we have. Our projects get advanced, and because we had selected the areas reasonably well we'll most likely see some improvements in the projects.
Dave |
