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

To: A-B who wrote (1197)	2/10/1999 5:22:00 PM
From: BAKE	Respond to of 1253

ECM will obviously have to repay its debts at some point in time. Bema runs all of ECM's affairs, and therefore has made all the decisions regarding ECM's debt.Bema would not recall the debt and destroy their own offspring company(ECM).I would hope not. If Bema were to buy out ECM at some point in time,the debt would have to be taken into account. ie.----> if Bema paid $30 US/oz for ECM...... ECM ~45 million shares. Reserves=~2.6 million oz(70% to ECM)=~1.82 milion oz for ECM plus potential. 1.82M oz * $30 us/oz=$54.6 million US for all of ECM Subtract $10 million US...$44.6 million US=~$67 million Can. The debt would have to come off prior to deciding on a final offering price. Likewise if Bema sold ECM to another company; the debt would have to be repaid or taken on by the buyer. Gary.

To: A-B who wrote (1197)	2/13/1999 4:58:00 PM
From: Terry Swift	Read Replies (3) \| Respond to of 1253

A-B: You have posed the $64,000 (million??) question. ECM owes Bema C$10 million. What is Bema going to do about it? If they convert it to equity at this price, the dilution will destroy the publicly owned stock. Bema has said nothing about what they intend to do, if anything, except they are not considering a takeout at these price levels. ECM would seem to be an attractive buy down here but the $10 million debt to Bema is a huge burden for them right now and until Bema declares its intent regarding the $10 million, ECM's price may be capped for awhile. Wish Bema would declare their intentions regarding the $10 million. If they want to use it to increase their equity position, they could own 75-80% of ECM real quick but that would destroy the market for those of us that own publicly traded stock. Terry