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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: VAUGHN who wrote (732)	3/17/1998 4:24:00 PM
From: Goalie	Read Replies (2) \| Respond to of 7235

Hello Vaughn: My take on the registration is this. The first attempt by the heirs to claim the rights was based on a very weak case, according to my sources in Pretoria who have seen the court papers recently. And because of the complications involved in the process of subdividing the mineral rights in 29-plus separate claims, a "who is on first, whats on second..." situation is created. Therefore, the lawyer (who appntly is an heir) decided that if only one company was involved... and not 29+ individuals ... he can tip-toe around Section 17 of the Act, and use another section which appntly does not require the Minister's intervention. And this is where Randgold/SUF lawyers want to stage a challenge -- when was this registeration executed? What is the legality of this move? Was it before RG applied for the exploration permit and subsequently the mining permit, etc. The new company of course has to provide all its documentation to RG/SUF side. Then RG/SUF lawyers will dwell into the law books. CJ also confirmed in tdy's interview, as I have suggested earlier that, as the stories began appearing in several SA business/mining dailies -- Business Day, Financial Times, etc. -- that Marsfontein was the target of exploration, and subsequently a major score, the heir's lawyer went to work to seek the injunction. And filed it, of course, right after the value of the discovery was in the headlines. The big ace in the RG/SUF hand, in my humble opinion, is the processing plant! Even if the M1 is carved up either between the heirs (and boy, there could be some fireworks within the families when huge sums are involved....) or by the new company, and others, it will take them several years and millions of Rand to (a) build a processing plant, and (b) get the water supply such plant needs. There's no other water in the area (according to my sources) except at the Klipspringer plant owned by SUF and which is entirely on SUF 100% owned property. In SA, it normally takes up to ten years to start operations -- CJ and SUF did it in 8 1/2 months! So, if I were a betting man on who would win a negotiating a settlement (if it even gets that far) my money would still be with SUF! Then there's the exciting NWT properties... I will watch eagerly when the drills start to churn in your part of the world, Vaughn. Exciting is right! Again you're right on the dough....!!!! BTW, I don't understand the investor fickleness -- the stock was higher WITHOUT the M1 discovery....So whats the problem with some people now -- there are far too many positives on the horizon, than negatives... Regards. Goalie.