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Gold/Mining/Energy : Bema(Bgo) and Arizona Star -- Ignore unavailable to you. Want to Upgrade?

To: Robert Salasidis who wrote (8089)	10/27/1997 10:43:00 PM
From: Terry Swift	Read Replies (2) \| Respond to of 10482

Robert: PDG puts up the first $200 million in cash, then arranges for and guarantees the balance of the mine financing, up to $1.1 billion. That plus PDG's $200 million up front is the $1.3 billion MRDI estimates the maximum cost of the mine and infrastructure to be at CC. They also build and operate the mine. BGO/AZS is a 49% partner with no obligations, no debt, and no contingency obligations; Placer takes on all debt risks. I don't think most people grasp the importance of that. Placer is putting up front cash of $200 million for the mine and arranging and GUARANTEEING the loans for the remaining $1.1 billion to build the mine. Maybe Bema stockholders don't appreciate that but the analysts following Placer sure do; they asked a lot of questions about it at todays conference; such as, how will it affect Placer's ability to finance Las Cristinas and other acquisitions Placer may make. Without this kind of deal, CC doesn't happen. Bema can't borrow $1.3 billion. Terry