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

To: Terry Swift who wrote (8091)	10/27/1997 11:01:00 PM
From: Lorne Larson	Read Replies (2) \| Respond to of 10482

Terry: What you say is right - but remember at this point all thats happened is that Placer has taken an option on the property. Placer can walk away after the exploration program/feasibility study. Its only risk at this point is the up-front money, being the $10 million cash, the BGO/AZS shares it buys at $10 million and the costs of the exploration program and feasiblity study at "estimated" $40 million. In effect BGO/AZS have optioned the property for 2 years for a payment of $60 million ($50 million if you consider that they issued treasury shares for $10 million of this). Is this a good deal - I don't know, but I do know that it likely needs shareholder approval. You can't enter into an agreement to dispose of your most substantial asset with simply a directors resolution. My main concern, as previously stated, is that it effectively blocks a take-over bid.