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Gold/Mining/Energy : GITENNES Exploration (ase:GIT) -- Ignore unavailable to you. Want to Upgrade?

To: Moneysmith who wrote (1064)	12/1/1998 7:15:00 PM
From: Pete Mimmack	Read Replies (1) \| Respond to of 1092

Here are the details: VANCOUVER, Dec. 1 /CNW/ - Gitennes Exploration Inc. (TSE-GIT) announces that it has entered into an option agreement to sell, subject to cash payments and a retained royalty interest, a 100% interest in Compania Minera Kori Pampa S.A. (''Kori Pampa'') to Cambior Inc. Kori Pampa, a company registered in the Republic of Peru, is the beneficial owner of mineral rights to 23 concessions, the most important being nine concessions comprising the Virgen Property. The proposed purchase will include cash payments totaling US$7,000,000 plus participation payments based on mine production. The cash payments will be paid in three installments of $2,500,000 upon closing, $2,500,000 12 months later, and a final $2,000,000 24 months after closing. If Cambior elects to not make the second or third payment, the option agreement will be terminated and the properties will revert to Gitennes. The cash value is predicated on an assumed gold resource of 400,000 ounces being present on the Virgen, valued at US$17.50 per in situ ounce. Gitennes will be entitled to participation payments once mining production exceeds 400,000 ounces of gold. These payments are based upon a 3 1/4 % net smelter return royalty (''NSR'') for gold production, a 2% NSR for silver production, and a 1% NSR for base metals and/or other minerals produced from the property. Once US$13,000,000 in participation payments are made, the gold NSR is to be reduced to 2% for the balance of mining operations. In connection with the option agreement, Cambior will advance to Gitennes an interim loan of C$250,000. The loan is repayable at closing or, if the transaction is terminated, 90 days after such termination. If the transaction is terminated, Cambior may elect to convert the principal amount of the loan into common shares of Gitennes at a conversion price equal to the average market price of Gitennes shares for the past ten trading days. Cambior's acquisition of the Virgen Property will result in the strategic combination of two adjacent properties; the Virgen, held by Kori Pampa and La Arena, held by Cambior. Both properties contain drill-defined, near-surface disseminated gold deposits amenable to open pit mining and heap leach extraction. The combination results in a preliminary gold resource estimated to contain over 1,000,000 ounces in all categories. Both properties have good exploration potential. Cambior intends to fast-track prefeasibility exploration and development at the Virgen. Gitennes will use the proceeds of the sale to acquire and explore new properties. The Azul Property, a 50:50 joint venture with Navigator Exploration Corp, will remain with Gitennes. The proposed option agreement is subject to Cambior completing its due diligence review of Kori Pampa's legal and fiscal structure, execution of a definitive agreement and approval by the shareholders of Gitennes. Shareholders will be asked to vote on the proposed transaction at an extraordinary meeting to be held in Vancouver on February 2, 1999.

To: Moneysmith who wrote (1064)	12/2/1998 12:41:00 AM
From: snorkel	Respond to of 1092

Gee ,,, Is that money going to be split up to the investors???? I think it should be. Sure glad I saw this comming and got out at $7.25 at a loss

To: Moneysmith who wrote (1064)	12/2/1998 6:02:00 PM
From: charred	Read Replies (1) \| Respond to of 1092

Ken, the company had to do something. It seems to me the company is out of cash and needed this deal. There a 250,000 loan attached to the deal. The fact is that Gitennes did not have the mult-million ounce deposit which the so called experts said it would have. At least the property has a good chance to be mined. Along with the La Arena, there is over a million ounces. The company is just another Junior with cash with no significant asset. 4.0 million cash CDN/26.5 million shares = 0.15 cents a share. Quite a drop from 9.00. Cheers