Hi mrfifty,Yes, there hasn't been any news from MIC although the...

Hi mrfifty,

Yes, there hasn't been any news from MIC although the calibre of the management impresses me.

It could be a case of it having been forgotten, I think.

There are a number of important items here:

"Proposed terms for the purchase of an 82% interest in the BioGold Facility have been finalised and were released to the market on 5 April 2004.

Subject to shareholder approval and other conditions, completion of the transaction, which is anticipated to occur in July quarter 2004, will result in Michelago achieving positive cash flows from that time and a robust base to increase its expansion into China.

• Sino Foreign Joint Venture (SFJV) registration has been completed for the Guangxi Exploration Project (Michelago 90% interest).

Initial exploration undertaken on the project during the quarter included geophysics and regional geochemistry and has highlighted a number of exploration targets within the Jinya ML and the surrounding EL’s.

• SFJV registration for the Jinya Gold Project, which contains an inferred resource of approximately 650,000 oz gold, has been delayed as Michelago negotiates to increase its interest in the project to approximately 80%.

• The Xinjiang Province Wholly Foreign Owned Enterprise (WFOE) contract has been executed. Michelago holds a 100% interest in this 2,700 square km project. Initial re-evaluation of existing data undertaken on the project during the quarter has focussed the Company’s interest on three target areas.

• A diamond drill rig will mobilise to the Jinya site on 26 April and a comprehensive exploration drilling programme will commence on the Company’s projects in May 2004".

Another summary:

"The BioGold Facility Acquisition • 82% interest in the BioGold Joint Venture to be acquired for A$12M • Michelago to be cashflow positive on finalisation of the transaction • BioGold JV to secure exclusive Bacox © rights in China, Mongolia, Siberia and Korea for up to 10 years".

" The BioGold Facility, located in Shandong Province, comprises a bacterial oxidation processing plant, semi-refractory Merille Crowe processing plant, gold smelter and a 51% interest in a gold refinery, currently producing approximately 270,000 ounces of gold annually".

"The transaction is subject to shareholder approval and a General Meeting which will be held on 5 May 2004 at Michelago’s offices in Sydney".


Gerry
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