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Gold/Mining/Energy : Maxam Gold Corp. OBB:MXAM -- Ignore unavailable to you. Want to Upgrade?

To: Alan Vennix who wrote (8665)	6/23/1999 10:12:00 AM
From: Chuca Marsh	Respond to of 11603

Only ONE HALF of PT-PD-yet 100% AU-GOLD Production, a very favorable CONTRACT: Funding Agreement As announced in the May 12, 1999 Press Release, Maxam Gold Corporation has entered into an agreement for a $ 30-million funding program with an unnamed source. To answer questions the company has the liberty to disclose, be guided by the following: Funding is secured with mineable open-pit ore reserves on the four Peoria Seven claims, plus 50-million Maxam common shares (33-million pledged from Maxam and 17-million from a major shareholder). The stock is not at risk so long as the committed funds are repaid, "…from production over 10-years, commencing no later than May 1, 2002...". The funding source is granted the right to purchase, at a 15% discount from market value at time of purchase, 100% of the gold production from the Peoria Seven mine. The discount option includes all gold production from 10,000 tons-per-day operations for ten years, or 5,000,000 ounces of gold, whichever is greater. The funding source is also granted the right to purchase one-half of the palladium and platinum production for 10-years from the Peoria Seven mine at a 15% discount from market value at time of purchase. At this time the funding source remains anonymous and any additional contractual details remain undisclosed until such time as the transaction is complete, the closing has occurred, the initial funds received, and the funding source agrees to be named. Chain-of-Custody Maxam announced publicly on April 15, 1999 preliminary results from two holes of the ten hole Chain-of-Custody drill program. Since April 15, Maxam has worked with its consultants to determine reasons for the low reported gold values. Extensive analysis of the sample sizes and the lower percentage of ore in the different screen sizes was completed. Results indicated that much of the "fines" were lost when high air pressure was required to remove the larger size river rocks that were encountered. As previously announced, in the desert alluvial ores, much of the precious metals recovery will be contained in the "fines". After consultation with the drilling company field supervisor and reviewing their extensive experience with the Becker Drill results when drilling desert alluvium deposits, management has authorized the drilling of the Chain-of-Custody area a second time, requiring use of sufficient water in the process with the Becker Drill to recover the "fines" that were lost during the first attempt. A more representative sample is anticipated. The specific drilling date will be coordinated between the Chain-of-Custody supervisors (hydroGEOPHYSICS, Inc.) and the drilling company as soon as practical. To comply with Chain-of-Custody requirements, the actual drill date will not be announced in advance, and visitors to the site will not be allowed during the process. Prospective joint venture partners minimally require evidence of a Chain-of-Custody completed report and/or corroboration in their laboratories. In certain instances a complete Ore Reserve Audit, plus a Feasibility Study is required. The current Maxam Gold Corporation Chain-of-Custody analysis pursuit is being continued to provide the Company with these options. Safe Harbor Statement Some statements contained in this and/or other Company correspondence are to be considered "Forward-Looking Statements" as defined under the Private Securities Litigation Reform Act of 1995. The words "believe", "expect", "anticipate", "estimate", and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties, and assumptions, including: the likelihood that the Company will continue to incur losses from operations and investments pending development of its mining properties; the uncertainty that the Company will be able to continue as a "going" concern; significant additional capital requirements and, the effects of economic factors, geological factors, operations factors, governmental regulations on exploration or mining operations. The company does not undertake to update any of the forward-looking statements that it may make from time to time. Further, there can be no assurance that any forward-looking statements will ultimately prove to be accurate. news \| properties \| updates \| investor info \| technical info \|contact \| email Chucka