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Gold/Mining/Energy : FORMATION CAPITAL CORPORATION- $900m in Cobalt finds -- Ignore unavailable to you. Want to Upgrade?

To: jack marshall who wrote (11)	4/28/1998 7:01:00 PM
From: mineman	Read Replies (2) \| Respond to of 87

For Cameco to BUY, Uranerz board will need to agree to SELL. The agreemen's wording states that Uranerz's first-right-of-refusal takes affect if there is any transaction where Uranerz disposes of any or all of their interest! In this case Formation Capital will have a one-time-only option to purchase 8% of the interest (98%) that Cameco are purchasing for the value that both Uranerz and Cameco put on that 8%. Cameco will have to put a value on it based on an independent assessment. If Cameco are paying $1/2 Billion for McArthur River and the other deposits, including this one, they will need to place a value on each of the deposits so that each deposit's value can be determined. For convenience sake, in August if Cameco say the discovery is worth $100 million, then Formation Capital will need to find $8 million to pay Cameco. Simple as that !!!!