Doug: This is the article which caused the pop, but it HAS closed above 1-1/2 now. Next stop? The moon? You called this!
Thursday November 20, 1:29 pm Eastern Time
Company Press Release
Brush Creek Concludes Gold Mining Joint-Venture
$9,000,000 to be Contributed Over 30 Months Brush Creek Controls 70 Percent
Partner 30 Percent Plus Option
GRASS VALLEY, Cali.--(BUSINESS WIRE)--Nov. 20, 1997-- BRUSH CREEK(NASDAQ:BCMD - news) Brush
Creek Mining and Development Co., Inc. 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 $9,000,000 over 30 months. At the signing, the Company received the first payment.
In return, Sterling Mining, LLC will receive a 30 percent interest in the current Brush Creek gold properties. Brush
Creek will retain a 70 percent interest. Sterling Mining, LLC will also receive 6,000,000 warrants which, when
exercised, will bring an additional $1,800,000 to the Company. Finally our partner receives an option, valid until
February 1, 1998. This option entitles Sterling Mining, LLC to increase its position in the joint-venture to 49 percent.
In return Sterling would contribute an additional $6,000,000 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
$16,500,000.
Sterling earns no interest in the properties until $9,000,000 has been received by Brush Creek.
James S. Chapin, Brush Creek CEO, 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 4000 acres of potentially diamondiferous ground near La Porte, California. The prospective diamond
properties are not covered by this joint venture agreement. Brush Creek is continuing to pursue a partner for that
ground.
Contact:
Brush Creek Mining and Development Co., Inc.
Lionel Gosselin, 888/272-7335 (Toll Free)
or
Brush Creek Mining and Development Co., Inc.
Jim Chapin, 916/477-5961 |
