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

To: Elizabeth Andrews who wrote (7637)	8/10/1998 11:46:00 AM
From: average joe	Read Replies (2) \| Respond to of 26850

Every mining claim in Canada has to have cash expenditures made or it reverts back to the Crown. Every claim taken to lease has to have cash expenditures made or it to reverts back to the crown. Voisey's Bay has enough money spent on it to keep it in good standing for probably a 200 years. Inco has a right to explore and has secured the rights to mine this project. No goverment in Canada would try and undermine the process that built the country. You cannot force Inco to go bankrupt to mine this deposit - there is no law against securing future supply. Tobin is talking tough to satisfy the electorate who believe that development is going to slow. over and out - aj

To: Elizabeth Andrews who wrote (7637)	8/10/1998 12:16:00 PM
From: Bearcatbob	Respond to of 26850

The name of the card game is capital flight. He better check his cards carefully. Bob

To: Elizabeth Andrews who wrote (7637)	8/10/1998 12:34:00 PM
From: E. Charters	Read Replies (2) \| Respond to of 26850

Well they do issue permits to explore and the license to stake ground carries obligations and in return grants the licensee rights to exploit minerals on the license as well. In 1995 the government passed an act requiring smelting AND refining in province, after the discovery was found to be important. It also cancelled the tax holiday specifically for Voisey Bay as they thought it a windfall profit. With the belief that it could conduct its business in a normal manner without undue interference, the company paid the original discoverors 4.03 billion in cash and stock. Also, due to the government negotiation with tribes in the area, it incurred obligations of some inexactly known amount to the tribes of approximately 300 million dollars. The claims carry a royalty to the original prospectors of about 300,000,000 as well. The claims are certainly no sinecure. Since that huge payout the nickel market has fallen to record low levels and is not likely to recover in very near term in part due to the Asian crises. With all this uncertainty the shareholders are left with a company that was unable to prosecute other more profitable interests and basically has been led down a garden path into a boon doggle. Other companies with less obligation enjoy the ability in Newfoundland to process their products out of province. Notably the oil and gas industry and the iron ore industry. It would behoove the province to look at the fairness to the company of putting them in a less than favourable position to compete in world markets with this resource. It might also attract more companies to look for world class deposits in Labrador of which there may be many, if Inco was more fairly treated. It is apparent that the rules have changed in midstream for Inco in what has to be classed as an arbitrary and after the fact cash grab by a government who does not seem to care what business climate it projects for resource development to major employers. I would say that what Inco paid for it IS owing the company. Even where Lac minerals was proven to have been in fiduciary breach and had to surrender its Hemlo claims , the company, Corona, who won them was obligated to pay Lac for its mill and mine it had built on the property.. (Holland, decision in Ontario Superior court, Corona vs Lac Minerals). And the crown does not get the claims back. Remember the original prospector, Diamond Fields? Well they optioned them and they did nothing to cause the development to be wrongful. Of course the entity Diamond Fields got absorbed by Inco so it would be complex to dissolve it and reconstitute the the original company. Then there are the original prospectors, Verbiski and Chislett. They have a legitimate claim to renegotiate the deal with whomever is awarded the claims by the government. echarter@vianet.on.ca The Canadian Mining Newsletter