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Gold/Mining/Energy : Pangea Goldfields T.PGD -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (488)	11/15/1999 10:24:00 PM
From: Terry Swift	Respond to of 1178

DD: Agree. We had an excellent close. It traded all the way up to C$4.30, down to C$3.85, and then ran back up and closed at C$4.25, up C$.40. A very good day. I wonder if there wasn't more to this than Pangea needing money? Pangea had C$7 million in cash, which was more than enough to complete the limited drill programs they were paying for, including the feasibility study at Tulawaka. Virtually every property they have is JV'd with a major that is required to pay the freight all the way through to feasibility and mine financing. This may have been a matter of Barrick wanting a bigger piece of the action, and Pangea wishing to remain on friendly terms with its JV partner and major player in the area. I don't believe this was done out of a pure cash need on the part of Pangea. I'm speculating here, but Pangea had no real pressing need for cash. If it had, I don't think Barrick would have been willing to pay as much as it paid for the PP shares and C$6.00 exercise price on the warrants. This is a familiar pattern for Barrick. It's beginning to look like Arequipa and the Perina deposit in Peru. I think Barrick has a very good idea how much gold can be found at Golden Ridge, and they certainly are aware of the huge potential at Tulawaka. They used their position to get a bigger piece of the action; part outright via the stock and warrants, part via the agreement regarding Tulawaka. The good news is that it is a very positive signal that Pangea is sitting on a lot of gold in the ground; the bad news is that we suffered some dilution for what will prove to be a bargain basement price. Never, never underestimate Barrick. Munk and Co. are, first and foremost, opportunistic; some might say predatory. Terry