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

To: Dave R. Webb who wrote (1937)	3/29/1998 10:55:00 AM
From: Phil Jones	Respond to of 4066

Dave, thanks for your posts. I guess that the investors out here will have to just watch and wait. Do you know if the 51% Mongolian partner has the money or access to the money to make its contribution? It can be withholding its payment: (1) because it wants a better deal, or (2) because it hasn't got any money. If (2), what's the point of talking with it any further -- unless it's to get the partner to lower its 51% interest to 40% or some other amount to match its financial input thus far. And if it should agree to lower its interest in the company to, say 40%, it still wouldn't give you cash -- though I suppose you could then look for a buyer for the 11% (51%-40%). I know it takes time to settle these matters, but if the POG starts going up, will you be in a position to re-open the Mill even without a settlement?

To: Dave R. Webb who wrote (1937)	3/30/1998 3:53:00 AM
From: Shirley Owen	Respond to of 4066

Hi Dave, I guess what I should have added was, if the partner had met their cash commitments, then MGR wouldn't have had to pay out almost $1,000,000 U.S., which means there would have been at least an additional $500,000 U.S. in the kitty to carry out the repairs, and for exploration on the Altai. At least as I understand it, instead of paying a million you would have only had to pay 49% of that.... is that correct? Until these negotiations are completed, do you intend to seek a j.v. partner for at least some of the Altai targets so that you can proceed on at least some of them, with the j.v partner paying the freight to earn their equity share? It seems that it would be a real blow if you were not able to do any exploration this spring and summer. If not, it seems to me that you would be frozen until you had been able to negotiate a deal with the current partner. Cheers Shirley