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Gold/Mining/Energy : JAB International (JABI) -- Ignore unavailable to you. Want to Upgrade?

To: sailor who wrote (1315)	11/20/1997 12:39:00 PM
From: Mondak	Respond to of 4571

********************NEWS********************* BW-Brush Creek Concludes Gold Mining Joint Venture; $9 Million to be Contributed Over 30 Months -- Brush Creek Controls 70%; Partner 30% Plus Option GRASS VALLEY, CALIF. (Nov. 20) BUSINESS WIRE -Nov. 20, 1997--Brush Creek Mining and Development Co. Inc. (NASDAQ:BCMD) today announced the signing of a joint-venture agreement which covers its current gold mining properties. The partner, Sterling Mining LLC, a New York City-based investment group, is contributing $9 million over 30 months. At the signing, the company received the first payment. In return, Sterling Mining LLC will receive a 30% interest in the current Brush Creek gold properties. Brush Creek will retain a 70% interest. Sterling Mining LLC will also receive 6 million warrants which, when exercised, will bring an additional $1.8 million to the company. Finally, the partner receives an option, valid until Feb. 1, 1998. This option entitles Sterling Mining LLC to increase its position in the joint venture to 49%. In return, Sterling would contribute an additional $6 million over 30 months with the first payment due on March 1, 1998. Should Sterling elect to exercise the option, the net amount paid to Brush Creek, after finders' fees, would be $16.5 million. Sterling earns no interest in the properties until $9 million has been received by Brush Creek. James S. Chapin, Brush Creek chief executive officer, stated: "We control the largest land position ever assembled in the northern mines district of the California Motherlode. This funding should allow us to more rapidly develop the resources we control and to become a significant gold producer. I am delighted for our shareholders and our employees." Robert Danial, speaking on behalf of Sterling, stated: "Our due diligence has convinced us that the surface of Brush Creek's massive property holdings has barely been scratched. We expect Brush Creek to be a high grade, low cost operation. We mean to insure that Brush Creek becomes a significant producer." Brush Creek controls nine mines in the Alleghany-Downieville gold district of Northern California. It also controls more than 4,000 acres of potentially diamondiferous ground near La Porte, Calif. The prospective diamond properties are not covered by this joint venture agreement. Brush Creek is continuing to pursue a partner for that ground. -0- jm/sf* CONTACT: Brush Creek Mining and Development Co. Inc.