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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Rock who wrote (4053)	1/3/2006 2:05:28 AM
From: jackjc	Read Replies (1) \| Respond to of 78408

Disagree completely. Mulatos was simply not economic at 275 gold, and Placer was not motivated to share with Kennecott. Also tax write-off was a consideration. At the time of the meeting Placer was dubious about the lightweight NGT but a heavyweight guy was brought to the meeting and the objections faded away. NGT people did a good job there. <investors get in without the risk> <difficult to screw up> Nothing could be further from the truth. NGT defaulted on the PDG payment twice. Deal was re-done to spread out payment first time. The 2nd NGT default was bailed out by AAS as fortunately they had just raised extra cash. But NGT holders took a 15% haircut and a quick merger was arranged. And I will never forget the 15% chop though also had good AAS position. It was very risky, no sweetheart deal at all, and we could easily have lost all on the defaults, as gold price was better and others would have came in then. Promising payments to majors when you have to raise cash in a bad market is the very definition of risk IMO.