As close as I could come to a date without further searching.
Kind of interesting to look at our hopes back than.
To: +Wendy Cusack (1001 )
From: +ackbh
Monday, Feb 16 1998 9:57PM ET
Reply # of 2058
Wendy, the section that you were reading that figure from has to do with minimum requirements of
usage for Noranda to provide or else be subject to termination of contract (If I am reading it
correctly). It states that fees of greater than $750,000 be met by the end of the first year of the
contract and other minimum values for second year and final year. I read that a base fee of $6,000
per production day would be charged for usage of the probe in any flyovers ($2,000 if weather does
not permit flight on any day) and that all expenses related to flyover plus a percentage more would
be picked up by Noranda ( except for any maintenance for the plane or the probe). They are giving
a discount of $70,000 for every $1 million of business Noranda provides. This sounds like they
expect to give a lot of business to Earth Search if they agreed to such a discount arrangement. On
top of all of this, they are in for royalties on anything found. This tells me that this will not be a
"penny stock" for long. I do not think that revenues will show up on the quarter ended December
31, 1997 because this agreement was dated on December 16, 1997. So it may be until the next quarter
that we will see revenues. |
