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Gold/Mining/Energy : Royal Oak-RYO -- Ignore unavailable to you. Want to Upgrade?

To: MiamiMike who wrote (769)	3/19/1998 12:25:00 PM
From: Michael Bidder	Read Replies (1) \| Respond to of 1706

Mike 85 million Royal Oak Mines Inc RYO Shares issued 140795079 1998-03-17 close $1.5 Thursday Mar 19 1998 The Globe and Mail reports in its Thursday, March 19, edition that Royal Oak Mines must find about $85 million in the next 30 days to complete its Kemess gold and copper mine or it will have to bring the project to a temporary halt. The Globe's Ann Gibbon writes that adding to Royal Oak's woes, its credit rating has been lowered, contractors have walked off the job at Kemess and the project is over budget. Yet Peggy Witte, Royal Oak's CEO and founder, insists it's not on the verge of bankruptcy. She said yesterday $85 million would meet Kemess's immediate cash needs and give Royal Oak a cushion to avoid problems later on. Royal Oak is talking with interested parties about getting it out of its financial distress, and is extremely close to putting the pin in the transaction, says Ms Witte. She disclosed that Royal Oak has even been looking for buyers for the whole company. It has opened up a data room for interested bidders but none have come forward. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com

To: MiamiMike who wrote (769)	3/19/1998 11:06:00 PM
From: Bill Jackson	Read Replies (2) \| Respond to of 1706

What you say is doable if the currency is acceptable(RYO shares) and the dilution is acceptable RYO shareholders. Right now to get $85 million you would spend 85 million shares and that would be around 30-35% dilution, a bitter pill, but better that no pill(brokeruptcy) One problem is that if RYO bit on a few other companies shares she would get outbid by others with better currency (ABX/TEK/PDG/?? shares or cash) So it is no easy exercise to get ownership for (near) worthless paper. When RYO flew high the had a strong currency, not now though. She will have to get a lender of last resort and allow some warrants at todays prices equal to the loan as a risk fee. After all they risk total loss if RYO folds, and not having to pay interst will help RYO recover and this makes the warrants acceptable. The trouble with vulture lenders is they extract an onerous fee(in warrants etc) but they are just at the edge of the cliff. Will the BC Gov't assume that Mantle??, they might act as a guarantor so that the lender of last resort will be comforted and give better terms. So it is politically doable. After all it is the BC gov'ts fault RYO is in this problem, so they do have a duty(WIndy Craggy) Bill