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Gold/Mining/Energy : Birim Goldfields Inc. (BGI-T) -- Ignore unavailable to you. Want to Upgrade?

To: The Barracuda™ who wrote (329)	10/6/1999 4:36:00 PM
From: Brian MacDonald	Read Replies (1) \| Respond to of 922

From the gold-eagle site: Birim: (BGI.TO): recommended at 20 cents, now at 28 cents. A lot of very positive news has come out of BGI since July. The action started pre-breakout with an unsolicited and rather modest buyout (40 to 50 cent stock swap) offer from Golden Star. The company wisely used that to negotiate a good royalty and cash infusion deal with Ashanti on it's most advance project, Mampon, Ghana. The deal gives BGI upfront payment of $4.75 million US for the first 175,000 ounces of recoverable oxide gold, plus a $30/oz royalty on any additional ore mined out (plus 20% of the uplift over $300 POG). BGI gets another $500K US selling 2,500,000 shares to ASL (10.5% of BGI) and another $500 K in convertible debentures, and cash of another $500K. The end result is a good illustration of how inefficiently the small cap golds trade. At 28 cents BGI has become a net net (market cap less than working cap on hand) : 23.7 mil shares out after deal X 28 cents CDN= $4.5 mil. plus $0.5 debt= $5.0 US mkt cap. BGI owns $6.5 mil cash (includes a little still in the treasury pre-deal), excellent future participation in Mampon, a new partnership with ASL, the high potential Bui concession and the rest of Dunkwa. Further, there is the potential of receiving $2 million next year from Dominion on a concession called Akrokeri should that company exercise it's purchase option. Not a bad proposition! Outstanding buy! gold-eagle.com