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Gold/Mining/Energy : Atacama Minerals -- Ignore unavailable to you. Want to Upgrade?

To: John Sladek who wrote (35)	12/15/1997 2:02:00 PM
From: kfdkfd	Read Replies (1) \| Respond to of 105

News appears to be a set back Atacama Minerals Corporate Update VANCOUVER, BRITISH COLUMBIA--Atacama Minerals Corp. (the "Company") announces that negotiations with ABN AMRO Bank N.V. with respect to the placement of project debt for the Company's Aguas Blancas project in Chile have been discontinued for the time being. The Company has determined that the conditions under which these loans would be extended could not be accommodated at this time. The Company intends to aggressively pursue financing alternatives for the Aguas Blancas project and fully expects the project to be developed as envisioned. Commenting on these developments, Robert S. Cogliandro, the President of the Company stated, "The unsatisfactory conclusion of negotiations with ABN AMRO is obviously a disappointment to the Company but the issues in contention were in no way a reflection on the projected economics of the project. In view of end product pricing, the project continues to be extremely viable and we remain committed to bringing it into production. Over the next few weeks we will be evaluating alternative financial structures for the project but we will also be committing significant equity capital towards continuing development. In the meantime, our strong cash position which is currently U.S. $17 million and our development of a strong technical management team leaves us easily positioned to initiate these actions and support operations for the coming year. By committing these financial resources, the Company is making a statement that the Aguas Blancas project should and will be built." The Company is continuing with the detailed engineering program initiated earlier this month. During the next three months, the Company will complete the final pre-construction engineering, begin the procurement of certain long lead-time pieces of equipment, and begin construction of key infrastructure elements at the plant site. By doing so, the Company should minimize any schedule slippage. Atacama Minerals Corp. has defined geological resources of 97.3 million tonnes of iodine ore and 36.7 million tonnes of sodium sulphate ore at its Aguas Blancas site near Antofagasta, Chile. At full capacity, the Company will annually produce 1,000 tonnes of crude iodine, 300,000 tonnes of sodium sulphate and 70,000 tonnes of potassium nitrate making the Company an important new supplier of industrial minerals. With sales prices for iodine currently at over U.S. $20 per kilogram and sodium sulphate at U.S. $140 - $160 per tonne, the project is expected to generate sales of over U.S. $55 million in its first full year of operations. This will grow to U.S. $75 million when the potassium nitrate plant enters production. ON BEHALF OF THE BOARD Robert S. Cogliandro, President

To: John Sladek who wrote (35)	12/17/1997 3:31:00 PM
From: kingfisher	Read Replies (1) \| Respond to of 105

Hi John, I spoke to Michael Bliss who covers Atacama at Latinvest Securities in London England.He still insists the mine will be developed and will be successfull.Mr.Bliss suggested that one potential financing alternative would be to have a cash rich gold or base metal mining company seeking diversification make a strategic investment into Atacama.The Asian crisis has no doubt impacted on ABN AMRO to be excessively demanding on the terms for financing.I look at this as an opportunity and will be adding to my position after the speculative and tax loss selling dies out.For a long term investor this stock will eventually be very rewarding. Take Care , R.B.