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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (14858)	2/16/1999 5:29:00 PM
From: teevee	Read Replies (4) \| Respond to of 26850

red, Everything has been hush hush lately. Here is my guess as to what might be going on...... 1. Aber NEEDS in a very big way, a contracted buyer for their share of production from the Diavik project. Without a guaranteed market, debt financing for Abers share of capital costs for Diavik is unlikely. Unconventional lenders (like the Nevada's for example) would probably want some additional equity, and it would be in their favor, not in the favor of current shareholders(ie. some form of heavy dilution). Should RTP proceed, and Aber doesn't have their share of capital costs, their interest could be diluted(this is where and the point in time when the Nevada's could step forward as a lender of last resort-to the detriment of Aber shareholders)....time is running out for them. Unfortunately for Aber, the only likely supplier of a sales quota or guaranteed buyer that would satisfy bankers or other lenders is De Beers........ 2. Hmmmmm....I wonder if De Beers has the upper hand here? Would they insist...ooops...politely suggest... that Aber make available through a farmout to DeBeers, their exploration lands, interests and projects outside of Diavik (this would include Snap Lake)? I can certainly understand why Winspear management might be just a little nervous about DeBeers.....the "hard ball" hasn't even started yet. The southern kimberlite field already appears to be far more important than the northern one. DeBeers knows this and will act accordingly. Winspear and SUF are the only juniors left in the southern type II kimberite field that DeBeers don't have their hooks into. Those are some thoughts for now and at this time, red. Don't worry red, the die is cast...and when the "lid" comes off, the tape will tell the story as we all tilt our heads back watching Winspear head into the stratosphere. regards, teevee