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Gold/Mining/Energy : JAB International (JABI) -- Ignore unavailable to you. Want to Upgrade?

To: Charger who wrote (3506)	4/17/1998 6:31:00 PM
From: DDS-OMS	Read Replies (1) \| Respond to of 4571

Charger, Only those mines that Sterling money was spent to develop/explore will Sterling get a 49% cut of profit 3 years hence. If BCMD spends its money--money from sale of gold or money raised through equity financing or simply borrowing--Sterling gets none of that, BUT they have some kind of option to buy into it. Don't know how this is structured--does Sterling put up 49% of development cost of a mine? If so, then BCMD takes all the risk and Sterling would buy in only if profitable. The particulars of this JV agreement haven't been made public, so can only try to get answers to questions.

To: Charger who wrote (3506)	4/17/1998 7:12:00 PM
From: DDS-OMS	Read Replies (2) \| Respond to of 4571

Charger, I'm not sure we are saying the same thing. You wrote "Any mine which is developed during the period of time (the 18 months) that the JV is funneling money into the company, the JV gets a percentage of (30% was it? - or whatever that percentage figure was back last November)...gets a percentage of the proceeds off of that particular mine." From this, you seem to be saying that the Ruby mine would be included in Sterlings 49% of profits--since it will be developed while Sterling is putting money into BCMD. However, if BCMD uses only the money from the Reg S, then Sterling gets no part of it--unless they put additional money into the Ruby development--additional money above what they have already agreed to in the JV.