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Gold/Mining/Energy : Mongolia Gold Resources -- Ignore unavailable to you. Want to Upgrade?

To: David R. Schaller who wrote (1914)	3/25/1998 12:44:00 PM
From: Dave R. Webb	Respond to of 4066

Bumbat is managed by Bumbat Company Ltd. Bumbat is controlled by a Mangement Committee (MC) that acts like a board of directors. The Management Committee members approve budgets, and requires the participating parties (MGR and MAC) to contribute any cash requirements. All profits and dispersements also require MC approval. Currently the Bumbat is headed by a B.C.-registered Professional Engineer, and the critical operations people are Canadian. The bulk of the staff and technical people are Mongolians employed by Bumbat Company. If Bumbat receives the necessary funds, Bumbat will start the plant and operate as it did before. All MGR has said is that it will not contribute MAC's share of the required financing, and as of today, the project cannot start-up with only MGR's contributions. Either MAC contributes, Bumbat arranges alternative financing, or it is unlikely to start in the short term. The good news is we will get these issues resolved. Also, MAC has put their share of project up for sale, and have had an offer (terms and conditions not fully disclosed to MGR). MAC is not involved with MGR in any other projects. These projects are proceeding with much reduced budgets, and have been examined by several other companies with a view to JV. MGR will sign a JV agreement on one or more of these properties, and programs will commence this summer. Dave