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Gold/Mining/Energy : Royal Oak-RYO -- Ignore unavailable to you. Want to Upgrade?

To: Michael Bidder who wrote (1319)	9/18/1998 2:40:00 PM
From: Bill Jackson	Read Replies (1) \| Respond to of 1706

Michael, we will wait and see. I want them to survive as it would be a sorry end to a saga to have them fail. Bill

To: Michael Bidder who wrote (1319)	9/18/1998 5:11:00 PM
From: Thomas P. Talbot	Read Replies (1) \| Respond to of 1706

I believe the next payment to Trilon is due in Feb. 1999. As to transfer of Kemess to the subsidiary it would, I believe make little difference in the event of default since this is a secured loan. Even if the property is transferred to a subsidiary it is still an RYO corporate asset just as it is now. The transfer of the asset to a subsidiary could have an effect on taxes as operating losses might not be applied against gains from a subsidiary as opposed to a non subsidiary operating division. Thus, it may be advantageous to retain it as an operating division. With respect to potential default on a fully secured loan the transfer does not appear relevant. I am not an expert on Canadian tax law but it would appear to present a tax issue in the US. This is probably why the transfer discussed in July has not yet taken place as far as I know. All the Best Tom