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(PR NEWSWIRE) Money Guild Inc. Announces Cooperative Republic of Guyana Ti
Money Guild Inc. Announces Cooperative Republic of Guyana Timber Cruise Results
NEW YORK, Dec. 2 /PRNewswire/ -- Money Guild Inc. (the Company) has
announced that it has received the results of the timber cruise conducted by
independent Forestry Engineers. The following is a detailed description and
economic analysis of the asset.
DESCRIPTION OF ASSET:
The Company has signed a Letter of Intent dated December 1, 1998 with
VEAMCO, C.A. to form a 50/50 joint venture. The asset of the joint venture
would be the woodcutting lease agreement #4193 for the exploration, harvesting
and export rights on a 355,000-acre (143,775 hectares) virgin forestland
located adjacent to the Cuyuni River in the Cooperative Republic of Guyana.
The lease agreement is currently held by VEAMCO who acquired it from their
purchase of both Makapa Woods, Ltd., a registered corporation of the
Cooperative Republic of Guyana and Maderas Botanamo, C.A., a registered
Venezuelan Corporation.
The forestland covered under the woodcutting lease contains 85% hardwoods
and 15% softwoods. Approximately 70% of the total tree population is
considered marketable (i.e., tree types already accepted and utilized in
timber and milled lumber production).
It should be noted that the following figures are purposely expressed as
conservative and refer to timber and lumber production by cubic meter or M3.
(One cubic meter equals 424 board feet of lumber).
The preliminary market evaluation, submitted in the VEAMCO Plan and
Executive Summary, indicated a conservative net average value of $80 US/M3
post harvesting. According to the independent Forestry Engineers report, an
average of 35.77 M3 per hectare could be expected to be harvested from this
concession. The projected value of the exploitable timber on the initial
10,000 hectares (25,000 acres) described in the report is approximately
$28,000,000 US, net, post harvest.
As the area demographics are essentially consistent throughout the
concession, the projected overall value of the entire concession of 143,775
hectares (355,000 acres) is estimated to be approximately $400,000,000 US,
net, post harvest.
Below is the Spanish to English Translation of Timber Cruise:
TECHNICAL FOREST REPORT FOR 10,000 HECTARES (25,000 ACRES) IN
MAKAPA WOODS LIMITED - GEORGETOWN GUYANA
Technical aspects to be evaluated:
1) History of the area
2) Kinds of species to exploit
3) Number of trees per hectare
4) Volume in cubic meters per hectare ( M3 / Ha.)
HISTORY OF THE AREA:
It is a relatively plain area, of virgin jungle with forest wood species
highly valuable in the market because of its good timber and working
conditions and its physical and mechanical properties adequate for
different uses in the market.
KINDS OF SPECIES TO EXPLOIT:
Those who appear in the species list to exploit according to the land lot
of research. According with the preliminary land lot study, there is an
average of One Hundred Thousand (100,000) trees in Ten Thousand Hectares
(10,000 Has).
The volume obtained for Ten Thousand Hectares (10,000 Has) is
Three Hundred and Fifty Thousand Cubic Meters (350,000 M3).
SPECIES PER HECTARE WITH MAJOR PERCENTAGE VOLUME IN M3
SPECIES PERCENTAGE SPECIES PERCENTAGE SPECIES PERCENTAGE
Mora 19.99 Zapatero 2.45 Caramacate 0.70
Green Heart 16.45 Pilon Rosa 2.15 Guarataro 0.53
Pilon Lomb 11.66 Puy 2.11 Pericoco 0.51
Baraman 10.54 Carano 1.94 Ceiba 0.46
Purgo 9.17 Caro 1.79 Alcornoque 0.42
Hueso de Pata de
Pescado 7.61 Danto 1.62 Aguacatillo 0.35
Carapa 2.99 Capure 0.83 Laurel 0.33
Algarrobo 2.50 Dividive 0.79 Guarapo 0.27
Maro 0.76 Murillo 0.14
Congrio 0.72
LIST OF SPECIFIC EXPLOITABLE ACCORDING TO THE LAND LOT OF RESEARCH
SPECIES NO. OF TREES / Ha VOLUME IN M3 / Ha
Guarapo 0.00 0.013
Laurel 0.03 0.10
Charo 0.03 0.10
Aguacatillo 0.04 0.14
Cedro Amargo 0.03 0.10
Caramacate 0.06 0.21
Alcornoque 0.04 0.14
Guarataro 0.05 0.18
Pericoco 0.05 0.18
Capure 0.08 0.28
Congrio 0.07 0.24
Maro 0.07 0.24
Carano 0.20 0.70
Dividive 0.10 0.35
Ceiba 0.05 0.18
Pata de Danto 0.17 0.60
Pilon Rosa 0.22 0.77
Caro 0.18 0.63
Puy 0.22 0.77
Hueso Pescado 0.78 2.73
Zapatero 0.25 0.88
Carapa 0.31 1.09
Algarrobo 0.26 0.91
Mora 2.04 7.14
Pilon Lomb 1.19 4.16
Purgo 0.94 3.29
Baraman 1.08 3.78
Green Heart 1.68 5.88
TOTAL 10.22 35.77
CERTIFICATION LETTER WRITTEN BY SR. NAVA - FORESTRY ENGINEER
Money Guild, Inc.
Wood Lease Concession Guyana
VEAMCO, C.A.
Dear Sr. Lanham:
Please be advised the enclosed report is evaluated in regards to
marketable trees only. Many of the species on the Concession are of very
high marketable value.
Respectfully submitted,
Reporte Tenico realizado por:
"Alfredo Jesus Picon Nava"
C.INo 8.002.363
T.S.U. FORESTAL
-- End of the Spanish to English Translation of Timber Cruise --
SR. ALFREDO JESUS PICON NAVA
Sr. Nava (Forestry Engineer/Forest Expert) and his crew conducted the
timber cruise. Briefly, Sr. Nava graduated from Los Andes University, College
of Forest Sciences with the degree of Forest Expert 1984. He is a member of
the Venezuelan Association of Forest Experts with the registry number #634.
He has worked as a Forest Expert for the Ministry of Environment on the
11 zone and for the National Laboratory of Forest Products. Additionally, for
three years he worked for CVG Proforca, a public forest products company.
The Company expects to receive proposals from prospective buyers for the
harvesting of the initial 10,000 hectares of exploitable timber. These
proposals are expected to be submitted to the joint boards of Money Guild and
VEAMCO for review and possible approval over the next two to three weeks.
The principle objective of Money Guild Inc. is to enhance shareholder
value through development and production of their exotic hardwood, mineral,
and granite projects to maximum potential while ensuring sound eco-management
and conservative conservation practices.
For investor relations and a copy of the map, please contact Denis Diggins
at 905-892-1582.
ON BEHALF OF THE BOARD ON BEHALF OF VEAMCO, C.A.
"David Phipps " "Tony Lanham"
Per: David Phipps Per: Tony Lanham
Note: This news release may contain certain "forward-looking statements"
within the meaning of the United States Securities Exchange Act of 1934, as
amended. All statements, other than statements of historical fact, included
in this release, including, without limitation, statements regarding potential
mineralization and reserves, exploration results and future plans and
objectives of Money Guild Inc., are forward-looking statements that involve
various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future results
could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from the
Company's expectations are disclosed under the heading "Risk Factors" and
elsewhere in documents filed from time to time with the United States
Securities and Exchange Commission and other regulatory authorities.
SOURCE Money Guild Inc.
-0- 12/02/98
/CONTACT: Denis Diggins, 905-892-1582, for Money Guild Inc./
(MYGD)
CO: Money Guild Inc.; VEAMCO, C.A.
ST: New York
IN: PAP
SU:
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