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Gold/Mining/Energy : Bema(Bgo) and Arizona Star -- Ignore unavailable to you. Want to Upgrade?

To: yosi s who wrote (9919)	5/20/1999 1:27:00 AM
From: Terry Swift	Read Replies (2) \| Respond to of 10482

You're right. Placer will keep their right to develop the property. I talked to Bema today about the agreement with Placer. The agreement provides that if the feasibility study shows that Aldebaran cannot be economically developed, the JV agreement stays in place. A finance committee made up of representatives of the three parties to the agreement (PDG, BGO, and AZS) will meet every quarter to review the economics of the project. Once the POG hits the price level at which the feasibility study shows that the property can be economically developed, Placer has one year in which to begin mine construction in order to keep the right to its 51%. It must then fulfill the remaining terms of the agreement regarding financing the project. The Bema IR told me Placer would very much like to develop the project and has not given up trying to come up with some way of making the project economical to develop. It's unlikely at these prices because of the $1.3 billion capex but Placer has no intention of walking away from it. Terry