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Technology Stocks : Xenolix Technologies (XTCI) 'Ecstasy'(Formerly MGAU) -- Ignore unavailable to you. Want to Upgrade?

To: Richard Mazzarella who wrote (1836)	6/14/1998 1:30:00 PM
From: Larry Brubaker	Respond to of 5143

Richard: The PR says the 840,000 shares were held by IPM. biz.yahoo.com I believe IPM was given 1 million shares in repayment of their loans to MGAU. I'd guess 160,000 of those shares were previously sold in the market. If so, the 840,000 shares sold by IPM to the private investment group would liquidate their MGAU holdings. IPM's 10-Q says something about IPM believing MGAU owes IPM money while MGAU believes IPM owes them money. Have no idea how (or if)this dispute affects this sale of MGAU shares by IPM.

To: Richard Mazzarella who wrote (1836)	6/14/1998 1:43:00 PM
From: Larry Brubaker	Respond to of 5143

Richard: Here is the pertinent language from IPMCF's May 1998 10-Q. During 1996 and 1997, the company advanced monies to MG Gold Corporation ("MG Gold") totalling $292,000 (the "Loan"). Additionally, during 1997, the company made non-interest bearing loans to MG Gold to cover the operating office expenses of MG, including the partial salaries of employees of the company to carry out normal technical and financial duties, with the allocation of expenses associated with such functions accrued over time. Both Le Furlong, formerly a director, president and chief executive officer of the company, and Paul Mentzer, formerly the vice president, operations of the company, are directors, officers and shareholders of MG Gold. The monies accrued under this arrangement, being the sum of $344,000, were converted into an aggregate of 1,160,000 common shares of MG Gold (840,000 common shares at $0.25 per common share and 320,000 common shares at $0.32 per common share). MG Gold repaid the sum of $50,000 owing to IPM during 1997, on account of the Loan and to date MG Gold still owes the sum of $242,000. MG Gold disputes the balance owing and is claiming that the $50,000 paid to IPM by MG gold was a loan by MG Gold to Ipm and not a repayment of amounts owing by MG Gold to IPM. MG Gold maintains that IPM converted the entirety of the Loan into 300,000 common shares of MG Gold at $1.00 per common share. The company rejects this position and maintains that the company never accepted any shares in lieu of such payment.