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Gold/Mining/Energy : ECM.VSE - El Callao Mining. -- Ignore unavailable to you. Want to Upgrade?

To: virginijus poshkus who wrote (1192)	2/6/1999 2:29:00 PM
From: BAKE	Read Replies (3) \| Respond to of 1253

Vargas,I have to agree with you. Bema needs to take out ECM(hopefully at a reasonable price). $6million to complete the final feasibility study...ECM doesn't have that kind of money.....and Bema does. ECM can't do another private placement at $0.20. To raise $6 million they would have to put out 30 million more shares....which would be absolutely ridiculous. ECM already has alot of debt, so taking on a big loan would not be a good idea either. IMHO *The only option is for Bema to buy-out the rest of the ECM shares that they don't already own.(and then to proceed with further development). Can anybody guess what a fair price would be for ECM(Iwould assume it would be in the form of a stock swap with Bema). ECM--->~45 million shares. Bema--->owns ~38% = ~17 million shares. Therefore ~ 28 million shares remaining to be purchased by Bema. If Bema pays $30 US/oz** (2.6 million oz * ECM's 70% stake)= 1.82 million oz for ECM. 1.82M oz * $30 US/oz = ~$54 million US= ~$81 million Can. $81Million Can./45Million shares =** ~ $1.80 Canadian . If Bema pays only $20 US/oz = ~ 36.4 million US = ~ $54.6 million Can. = ~ $1.20 Canadian **. I know that Bema/ECM are only considering "open pit mining" at present which includes only 1.1 million oz. The rest will be mined by underground method in the future. Therefore is a 1:1 stock swap acceptable??? More??? Less??? This is all my opinion only. All comments accepted. Gary.