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Gold/Mining/Energy : Zenda Capital Corp. -- Ignore unavailable to you. Want to Upgrade?

To: KC Jones who wrote (75)	5/18/2004 10:06:05 AM
From: E. Charters	Respond to of 217

Sandy was paid $50,000 for staking the McIntyre mine, which is the equivalent of $1 million today. Within one year he was broke, buying rounds for the house at every tavern he wandered into, which were many. It was arranged to pay him a lifetime pension of 150 dollars a month which today sounds like a pittance but it was actually quite generous in those days. The best prospectors deal I ever heard of netted them 50 million each. It was a smelter return convertible to 2 million shares of Hemlo Gold. Never take a net profits payable after payback. It is a fact that there have never been any payouts to prospectors on those schemes. Most smelter returns have beneficiation clauses in them that reduce the payout to a percentage of net profit. Most never pay if they have after payback clauses in them. The reason is most companies always re-invest capital to continue to operate so they are always paying back some loan or other. Noranda has never paid out a dime in its history on a net profits interest to any prospector. It's ten percent royalty on Hemlo payable to some prospectors has not been collected on since inception of the mine which was 21 years ago. EC<:-}