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

To: Pete Schueler who wrote (1971)	4/2/1998 7:33:00 PM
From: Dave R. Webb	Read Replies (1) \| Respond to of 4066

Pete You asked the following questions: Questions for Dave. Why did MGR go with a partnership arrangement for Bumbat and why does the partner have 51%? Is this a Mongolian requirement? Are there tax or other commercial benefits? The Mongolian Government in 1992 was only offering a 49% interest. This was standard at the time, and typical of a cautious government that had been told for over 70 years that westerners were evil. Who has controlling vote on the management committee? Management decisions are made by unanimous decision. Each party gets equal vote. Therefor a deadlock is common. There are arbitration provisions. Are any of the MAC principals connected to Mongolian government officials? No, other than in a country of 2.3 million people, there is a really good chance someone in your organization knows someone in government. Bumbat,IMHO, is the backbone of MGR. I want to see it secured as quickly as possible. I too want to see Bumbat secure, and operating. MGR has other assets, some may be more valuable, but none are as developed. Dave