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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: RBMac who wrote (2078)	10/9/1998 6:30:00 PM
From: BozkurtD	Read Replies (1) \| Respond to of 7235

First of all, both parties (SUF and NDR) describe this as "talks". Not amalgamation nor negotiations. I.M.H.O. I don't expect anything to happen for couple of months. I am sure that SUF would want to do their own survey of New Indigo's (NDR) properties especially the Jericho project and the land based kimberlite called Contwoyto -1. But obviously before this they have to agree on the principles. It seems like New Indigo is having severe financial problems. But their partner Lytton still has some money left to carry the project for 3 to 6 months. So the whole Jericho project may well go into the new year. But as Vaughan mentioned before this publicity may attract attention and other parties may get involved in this deal. Otherwise SUF will have the upper-hand. I don't think that anybody, including the parties that are involved in these talks can answer your question yet and it depends on a lot of factors. 1- If SUF or NDR still want to pursue this in couple of months. 2- If SUF is happy with Jericho results 3- If other parties get involved ...and so on and so on and so on. I am not sure if I want to bet my money on NDR yet. Regards Bozkurt P.S. It seems like New Indigo HO has moved to Toronto. Their phone number is: 416-777-1998

To: RBMac who wrote (2078)	10/9/1998 7:05:00 PM
From: VAUGHN	Read Replies (1) \| Respond to of 7235

Hello RBMac All depends if NDR is a motivated seller/deal maker and NDR litigation does not make the matter unachievable. Have a good Thanksgiving (up here) Regards

To: RBMac who wrote (2078)	10/10/1998 4:43:00 PM
From: Valuepro	Read Replies (2) \| Respond to of 7235

Interestingly, John Kaiser's newsletter from the end of last month speculated on just this sort of thing happening between SUF and NDR. For what it's worth, you might find one of his comments of interest. "A paper bid by Southernera, for example, on the basis of 2 New Indigo for 1 Southernera would dilute Southernera by only 7.5 million shares, would give the New Indigo shareholders a reasonably liquid market at $3-4 per New Indigo share, and bring a strong partner into the Jericho play." Kaiser does not explain how/why NDR could be worth half the current share value of SUF. Vaughn, thanks for the correction. An apology is not necessary. VP