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Gold/Mining/Energy : ASHTON MINING OF CANADA (ACA) -- Ignore unavailable to you. Want to Upgrade?

To: Jesse who wrote (2737)	10/31/1997 9:11:00 PM
From: Famularo	Read Replies (1) \| Respond to of 7966

>>> Frontier is entitled to a GORR equal to 2% of the average appraised value of all gem and industrial diamonds produced, recovered, sorted and graded from the property free and clear of all costs of development and operation, and subject only to government mineral and mining taxes and royalties and the fees and expenses of graders, to be paid to Frontier. Average appraised value means the average of the valuations in Canadian dollars determined by two independent graders, one appointed by the property holder and one appointed by Frontier. Such independent graders would be duly qualified and accredited and would sort, grade and value the diamonds in accordance with industry standards, having regard to, but without limiting the generality of the foregoing, the commercial demand for the diamonds, the grades of the diamonds (gem or industrial) and the colors, sizes and clarity of the diamonds (gem or industrial). Each independent valuator would value each particular classification of the diamonds in accordance with the industry price books, standards and formulas. The intention of the parties is that the GORR is to be paid to Frontier on this basis regardless of the price or proceeds actually received by the property holder for or in connection with the diamonds or the manner in which a sale of the diamonds to a third party is made, and without deduction except for the fees and the expenses payable to the two graders, which will be paid by the property holder. The GORR will be paid to Frontier within 30 days of each calendar quarter, based on all diamonds from the property which were graded in that quarter. The NSR will be calculated and paid on industry standard terms on all other minerals produced. <<<<< Talk about being optimistic!!! Count your chickens before they are hatched. Interesting, a company does not usually work out deals like this unless they are "extremely" bullish and confident of their direction/plan. Only a few companies have talked about details like this before economic pipes have been confirmed. It should be a busy 1998. Look out! Do we need to be rocket scientists to figure out that Ashton is a buy at these prices. The higher the risk, the higher the reward. Hmmm, I feel I am repeating myself.