Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Pacific Rim Mining V.PFG -- Ignore unavailable to you. Want to Upgrade?

To: James G. who wrote (9406)	4/4/1998 9:42:00 PM
From: Enigma	Read Replies (1) \| Respond to of 14627

Barrick/Bre - X probe. As far as I can remember - Barrick was hot to trot on Busang for a long time after this date. Don't you remember Munk's visit to Indonesia, Barrick's lobbying of high Indonesian officials, deals with relatives of the President, etc. There were a lot of holes drilled there. Barrick have huge tracts in Indonesia - the largest of any company - so they probably thought that the geology supported the possibility of a major find. Had they made the deal with Bre-X no doubt their due diligence would have led them quickly to the same conclusion as Freeport McMoran. In a law suit like this one has to assume that the lawyers for the plaintiffs are on a contingency fee basis, and knowing there is no money in Bre-X are casting their net as wide as they can - and including Barrick (at the eleventh hour apparently). I would think Barrick can mount a successful, and easy, defence in the light of their subsequent actions. There are two other factors to consider here: 1) Barrick would have signed a confidentiality agreement covering the testing 2) If Barrick had issued a warning they would not only have breached this agreement - but say they went ahead anyway and the Busang deposit turned out to be the motherlode that Bre-X were promoting - Barrick would have been open to lawsuits galore from all those people who had sold on the basis of the warning.