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

To: Roebear who wrote (1436)	11/22/1997 4:01:00 AM
From: Oscar	Respond to of 4571

From 11/21 Sac Bee: Some new info Brush Creek signs up gold-mining partner By Cathleen Ferraro Bee Staff Writer (Published Nov. 21, 1997) After months of searching and one false start, Brush Creek Mining and Development Co. Inc. confirmed Thursday it has found a new partner for its gold projects. Grass Valley-based Brush Creek and Sterling Mining LLC, a private investment firm in New York, signed a joint venture agreement late Wednesday night that allows the local company to retain a 70 percent controlling interest in its nine gold mines. Sterling, which stands to get the remaining 30 percent interest in those properties, agreed to give Brush Creek $9 million over the next 30 months. The first payment of $500,000 was made immediately after documents were signed. Sterling's interest becomes effective only after it has paid the full $9 million. Brush Creek CEO Jim Chapin said the company initially plans to use the money to dig at deeper levels in the Lower Brush Creek Mine where operations already are under way. "The real promise of these mines is down in the depths," he said. "We want to go from 600 feet to 1,600 feet below ground level where there's a vein of quartz that promises to hold gold." In October, the company extracted about 300 ounces of gold from one of its eight underground mines spread out over 5,000 acres in the Alleghany Downieville area. Brush Creek also owns a ninth open pit mine farther north in the La Porte area. Under the partnership, Sterling also has the opportunity to increase its stake to 49 percent. But the New York company only has until Feb. 1 to decide and then would have to kick in another $6 million over 30 months, with payments beginning in March. Brush Creek, which is traded on the Nasdaq Stock Market, also offered Sterling 10 million stock options. If Sterling exercises those options before a deadline in 2001, it would bring Brush Creek an additional $3 million. Altogether, the Grass Valley company could get a total of $16.5 million from Sterling after certain fees are subtracted from the transaction. Sterling executives could not be reached for comment. About two weeks ago, Brush Creek announced it had another gold partner, Albany Sales & Commerce Ltd., based in Dublin, Ireland. That deal would have given Brush Creek $14.5 million over the next three years. Chapin would not say why that agreement was never signed. Besides its gold projects, Brush Creek also is mining the region for diamonds. Earlier this year the company discovered diamond indicator minerals and confirmed the presence of sapphires sprinkled through some of its rock samples. In certain geological environments, sapphires and diamonds are found together. Brush Creek is aiming for a joint venture agreement in its gem explorations, too, but so far it hasn't found a suitable partner. The company's stock was up 12.5 cents Thursday to close at $1.56. sacbee.com