Wednesday July 8, 10:25 pm Eastern Time
Company Press Release
Brush Creek Mining and Development Corporate Update
GRASS VALLEY, Calif.--(BUSINESS WIRE)--July 8, 1998--Brush Creek Mining and Development Co., Inc. (NASDAQ:BCMD - news)
today announced that its 30% partner, Volcanic Resources, had not yet paid the company the $1,080,000 payment the company believes was
due on July 5, 1998.
Brush Creek has sent Volcanic Resources a notice to that effect. In the meantime, discussions between Brush Creek and Volcanic are ongoing.
The company would suffer a material adverse effect should Volcanic ultimately not make the payment.
As discussions continue with Volcanic, Brush Creek is pursuing other partnership opportunities and financing alternatives. No assurance can be
given that the company will be able to successfully conclude the alternative negotiations.
In order to attempt to preserve the company's remaining cash, Brush Creek has laid off its work force. The lay-off comes at a particularly
inopportune time as the mining crews had just broken into virgin gravel in the Black Channel at the Lawry Mine.
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