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

To: Winzer who wrote (388)	11/1/1999 8:43:00 PM
From: Brian MacDonald	Read Replies (1) \| Respond to of 922

<What are the key dates and deliverables that we have to look forward to ,wrt BGI and Ashanti? i.e. looking to see when we can expect some life in BGI.>. The initial key date - October 29/99 - has come and gone. I understand that Birim and Ashanti are hard at it with the paperwork and that they are certainly trying to get this deal finalized - via their lawyers. In light of this, I think BGI will give ASL a little breathing room to finish the deal (two weeks?). It looks as though ASL has indeed been bargaining in good faith but has been a little distracted by other matters - like survival. It wouldn't be too smart to pull the plug on the deal with Ashanti so long as every effort was being made to bring it to the conclusion they had agreed to earlier. I think that this will happen soon. < BGI held steady last week; but the POG is under pressure this AM down $5.90. SO who knows how this would impact BGI>. The POG has little impact to the initial deal. It would certainly impact the entire deal, and the length of the cashflow from potential deeper operations, but that is somewhat down the road and not a real issue at this point. What is clear is that at a low price, ASL feels that there are at least 175,000 ounces of gold in the oxide ore at Mampon - still to be confirmed. This figure is also thought to be very conservative and if they were to find more gold deposits on the same property, BGI would be eligible to get another payment based on the same formula. As I see it, the closer the price gets to ASL's average hedge price, the better financial health ASL finds itself and therefore the more able it will be for ASL to find the capital necessary to expand - onto Birim's Mampon close to surface gold properties. It would certainly be a Win-Win-Win scenario for Birim, ASL and Ghana. Brian