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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (28141)	2/24/2004 4:59:59 PM
From: aknahow	Respond to of 39344

Shareholders will vote and other Dundee interest control enough shares to give it effective control. Read the Dundee Bancorp release as they are acquiring the Dundee Wealth interest. D.B. will end up with 21% of the operating company after all is said and done. I own some Dundee P.M. I am not enthused about the Bulgarian interest due to my perception of political risk. But Goodman has come to another conclusion. I think he is better informed than I am. Am interested in what other properties will be melded deeper into the Dundee Operating Company fold. I do think that what Goodman says, in any of the annual reports should be read with care. Whatever is said is said with a reason. Goodman owns 89% or more of Dundee Bancorp, (if I remember correctly). Goodman has indicated his interest in the Hope Bay area and IMO the new operating company will increase its' interest/control of Miramar as time goes on. I did not expect the discount to close today. I expected the company to become an operating company because it was so hot to trot on the Bulgarian properties. But I did not expect the deal to be done prior to the annual report release. In retrospect it made sense to do it first and explain all in the annual report. I think I am going to stick around until I at least have a chance to see the annual report. Disclosure, I own some of both Dundee P.M. and Miramar. Own much more Miramar in dollar terms than Dundee.

To: Tommaso who wrote (28141)	2/24/2004 8:48:02 PM
From: aknahow	Read Replies (1) \| Respond to of 39344

I subscribe to the Northern Miner. I find it well worth it, and recommend it to others, especially if doing so lessens the penalties for copyright violations. Here is their online version. Really Dundee Wealth was part of the picture but sold its' interest to Dundee Bancorp , today, so no complaint with the article. I am very interested in ideas on how this change will impact present holders, will they sell or stay? And what will happen to the existing portfolio of precious metal companies? "Dundee Precious Metals eyes producer status 2/24/2004 Capital Markets Not satisfied to watch from the sidelines, Investment company Dundee Precious Metals (DPM-T) plans to join the ranks of gold producers by developing two recent Bulgarian acquisitions itself. "The primary motivation for this change is to provide shareholders with advantages that will accrue from the quality of the company's gold mining assets in Bulgaria. We feel that we were fortunate to acquire these assets and the best opportunity for shareholders to benefit from this purchase is to change the mandate of the company," says Dundee CEO Jonathan Goodman. In September, Dundee picked up the operating Chelopech gold-copper mine in Central Bulgaria and the Ada Tepe exploration properties in eastern Bulgaria. Dundee plans to sink about US$40 million into upgrading Chelopech with the goal of tripling production to 1.5 million tonnes mined ore per year. Dundee says the mine currently produces about 500,000 tonnes of ore annually from underground workings. Chelopech mined around 609,185 tonnes of ore grading 4 grams gold and 1.6% copper, to produce 48,000 oz. of gold in 2002. Measured and indicated resources at Chelopech, 75km east of the capital Sofia, are pegged at 17.9 million tonnes grading 4 grams gold and 11 grams silver per tonne plus 1.5% copper, with the bulk lying in the indicated category. Inferred resources stand at 27.4 million tonnes running 3.7 grams gold, 9 grams silver and 1.4% copper. The estimates are based on a cutoff grade of 4 gram gold equiv. Infill drilling aimed at increasing the confidence in the resource estimate and optimizing the ultimate throughput rate is ongoing. Indicated resources at Ada Tepe stand at 1.5 million tonnes running 7.3 grams gold and 4.3 grams silver; the inferred category contains 4.7 million tonnes averaging 3.7 grams gold and 1.5 grams silver. Both estimates employ a 1 gram gold cutoff. A feasibility study is currently under way at Ada Tepe. An initial scoping study of the project envisaged a low-cost open-pit operation producing 150,000 oz. of gold per year for six years. The company says the two assets will form the initial base of its operating activities, adding that it has more than US$45 million in cash and marketable securities on hand. As part of its plan, the company will also terminate its investment management agreement with Goodman & Co. and affiliate Dundee Bancorp. Goodman has agreed to convert its 3,000 common shares (which represents the entire issue) in Dundee Precious Metals (DPM) into a like number of class A shares. The conversion will allow Dundee Precious Metals to continue with a single class of shares. Dundee Bancorp will receive 925,000 class A DPM shares; it already has 845,311 shares, or about 9% of the total outstanding. Bancorp will be granted an option on another 500,000 shares at $36.57 per share. The warrants are good for only two days following Dundee's transformation. When the dust settles, DPM plans to reclassify all class A shares as common shares, and split its shares on a 50-to-1 basis. The news sent shares in Dundee Precious Metals $4.90, or about 16%, higher to a new 52-week high of $36 in afternoon trading in Toronto on Feb. 24.