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Gold/Mining/Energy : JAVA GOLD -- Ignore unavailable to you. Want to Upgrade?

To: RICHARD GIANNOBLE who wrote (107)	1/6/2001 11:32:45 AM
From: robingrayson	Read Replies (1) \| Respond to of 121

RICK - More than a dozen stockholders have contacted me. However now that most of the homework has been done, it is now urgent to get a current list of all stockholders. This is held in Toronto. Is their any volunteer amongst the stockholders to make the trip to Toronto? Then a shareholders' meeting can be called. I have all mapped out all the legal and bureaucratic steps needed. I do not have legal grounds to get a copy of the list of shareholders, as I am not a stockholder - anyway I am here in Ulaanbaatar ! You comments regarding Armand Beaudoin selling off 60% interest when the company did not have any other officers or directors also troubles a lot of people! However: 1. the sale was made by a 100% subsidiary of JVAG - Zaamar Goldfields Ltd, a company registered in Mongolia. At the time of the sale, this company DID have a full set of 3 Directors. 2. the sale was made between 2 Mongolian companies on Mongolian soil as a contract, with disputes to be subject to the Arbitration Court of Mongolia. I am NOT a lawyer but I am confident this means the contract stands up in Mongolia, and is NOT bound by Canadian or international laws. 3. On the contrary, Armand Beaudoin WAS governed by Canadian laws at the time of the signing. Unfortunately he passed away and thus his estate would need to be pursued. 4. The Mongolian party carefully adhered to its side of the contract signed by Armand, but Zaamar Goldfields did not follow it so closely as they should of - largely due to the mess when Armand passed away. This makes JVAGs case rather weak. 5. I appreciate your line of reasoning. However I extremely doubt if it would stand up in a Mongolian court (where it matters) that "the buyers had an obligation to understand who they were buying from and the significance of the assets to stockholders" because : a) the contract was in English and Mongolian b) the licenses were in the name of Zaamar Goldfields NOT JVAG c) Armand Beaudoin signed as MD of Zaamar Goldfields d) the stamp is of Zaamar Goldfields e) the breaking of the Business Corporation Law of Canada, rules of the Ontario Securities Commission would be seen by the Mongolian authorities to be the statutory duty of the Province of Ontario and the Ontario Securities Commission, and thus outside the jurisdiction for any Mongolian court to decide. f) there is no Mongolian law or regulation so far as I can see that states how a 100% owned subsidiary should be controlled by its foreign parent company,only that it should comply with all Mongolian laws and Mongolian regulations - which it did. 6. Of course a 40% cake is less valuable than a 100% cake. However, if the contract had not been made, then the license fees for the dredge area (Toson Alluvial) and dry terrace area (Toson Terrace) would certainly not have been paid (as is indeed the case with the JVAG hardrock license areas) and the licenses would have been snapped up by others. That said, the dredge project looks very promising indeed from a financial standpoint - we should perhaps discuss this privately. A further 3 factors are: 1. The Zaamar Goldfield in mid-2000 saw the SECOND large gold dredge project get successfully underway - Far East Mongolia Co (as featured in an article and photos in placersoftheworld.bizland.com ) and this time with REAL economics and proper management. This dredge (private) proved it is possible to dredge and crank out gold in LATE DECEMBER in the minus 35C conditions, and is set to be the No.1 gold producer of Mongolia in 2001. The first dredge (semi-state) finished weeks earlier - due to management etc. 2. The Haailast valley, a side valley linking the dredge areas with the Bumbat Mine of Tyhee (see Tyhee thread) has a large active dry placer mine, sold by the State in mid 2000, and production is already much higher by the new private owners. 3. My expectation is that the THIRD dredge (on the Toson alluvial area, 40% JVAG) will be in action sooner rather than later. The new Government has this dredge as a national priority - it will be the biggest placer gold mine in Mongolia. So far as I can see (as a geologist - I am not a mining engineer), there are no particular problems in dredging the area, now that subtantial experience of dredging had been gained immediately upstream by Dredge No1 and now WINTER mining by dredge No2. The Toson area is finer gold (by virtue of being downstream) but - and here is the boggling bit - Dredges 1 and 2 are using Russian-style sluice boxes and thus a lot of the fine gold is lost, but still make remarkable profits. Dredge No3 is expected to use high % gold recovery systems (jigs for instance, or even Knelsons maybe)as the Mongolians are learning fast. A combination of a)winter working as well as summer, b) high % gold recovery systems and c) a dredge design which addresses some environmental concerns, and the project is indeed a cash-cow. Operational costs per kilo of gold of such dredges are not as high as land based operations, which anyway have severe problems in working more than 155-180 days a year due to the harsh Mongolian winter. It is clear that the economics are good, that JVAG can clear all its debts and cover all its operational expenses - and gain credibility with investors and financiers. 40% of a Mining License does NOT achieve this - 40% of a OPERATIONAL dredge cranking out more than 1 ton of gold a year certainly does. For a raft of reasons this can all happen rather quickly. Which brings us back to the need for a shareholder to get the bus to Toronto to get the info on the shareholders - then to push ahead with a shareholders meeting. Happy New Year Robin Grayson General Director Eco-Minex International Ulaanbaatar emiweb@magicnet.mn P.S. for readers and investors wanting to get up to speed, please read the detailed articles on JVAG posted on: placersoftheworld.bizland.com This site also describes the active gold dredges at Zaamar.