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<br />Camp Bird Mine
<br />Near ®ura:y Sold
<br />By BRUCE WILKINSON
<br />Denver POST Business Writer
<br />The legendary (:amp Rird
<br />Mine properly southwest of
<br />Ouray has been sold by h'ederal
<br />Resources Corp. of Salt Lake
<br />City to Gila Mines Corp. of
<br />Phoenix for $5 million plus a re-
<br />tained royalty.
<br />1'he Camp Bird, a gold and
<br />silver mme, was developed in
<br />the early days of Colorado min-
<br />ing by Tom Walsh, who made
<br />enough money from it to buy
<br />the (lope diamond for his
<br />daughter, F,velyn Walsh
<br />McLean.
<br />Federal Resources, headed
<br />by John Losse as president,
<br />said the proceeds w!ll be used
<br />to help repay $5.2 million in
<br />loans restructured under an
<br />agreement reached Monday be-
<br />tween the company and its
<br />bank creditors. Current loans
<br />will be extended to Dec. 31,
<br />1986.
<br />Federal Resources, which
<br />has suffered severe financial
<br />problems the last several years
<br />because of the deteriorated
<br />uranium market, said it ex-
<br />pects to be able to repay its
<br />loans ahead of schedule and re-
<br />alize a $2 million Lo $3 million
<br />cash surplus.
<br />Greg Davis, president of Gila
<br />Mines, a small publicly held
<br />company incorporated in 1978.
<br />said Gila Mmes has paid Feder
<br />al Resources 8500,000, with an
<br />other $500,000 due Aug. 31 and
<br />;3 million more by yearend. Ile
<br />said the final;I million is to be
<br />paid h!;262,000 amounts, which
<br />includes interest, the last day of
<br />each year starting in 1984.
<br />Ile said Cila Mines plans la
<br />have a joint venture project on
<br />the mine, which has not been
<br />operated since 1981.."We've got
<br />budgeted plans exclusive of
<br />purchase costs; we can open up
<br />for afull-scale mining opera-
<br />tion within 15 months for ;2:5
<br />million;' Davis said. Cila Mines
<br />atready has' entered into an
<br />agreement with Ilaven Devel-
<br />opment Co., a privately held
<br />Norttr Carolina company, to
<br />which Gda Mines sold the
<br />Camp Bird mill on a leaseback
<br />basis.
<br />Losse said Federal Re-
<br />sources retained a royalty in-
<br />terest in the Camp Bvd Thal
<br />starts a1 4 percent and goes to 5
<br />percent of net smeller receipts.
<br />The company also retains a 2
<br />percent royalty interest in the
<br />Bachelor-Syracuse Mine "with
<br />cert:!in cost olfsets with re~
<br />sped to s!ockpiled ore."
<br />The Denver Post Tuesday, Jurte g; 1983
<br />Oilmen Decry Cot
<br />WINDFALL From 1-F Inds
<br />Lain
<br />was
<br />r tead of increasing since the tax was enacted
<br />in 80.
<br />II the industry considered [ryrng the legis-
<br />lative oule to gel the lax repealed? "Obviousl
<br />that's a avenue we can pursue," Welltsh s
<br />"but ! ca tell you offhand it's not a very pr a~
<br />ble one. T tax has come mlo the mains eam
<br />It's a jor revenue suppher tot U.S.
<br />Treasury at time when they're la g about
<br />balancing the b dgel."
<br />But Wellish a ed [hat there are ' (her legal
<br />and constitutions slues that ca be pursued
<br />down the road."
<br />Jack Swenson, a cutive vi president of
<br />the Rocky Mountain & Gas ssociation, said
<br />his group of major an de endent firms was
<br />"not a party to the suit, certainly very in-
<br />terested in it." He called a Supreme Court's
<br />decision "unfortunate."
<br />Swenson said the de ion 't Wcely to have
<br />much new impact in erms o educed drilling
<br />activity. The tax robably continue to
<br />have an impact. I going to con ue to hurl,"
<br />he said.
<br />Does the co 's decision raise f rs that a
<br />windfall prod tax can be linked to 'station
<br />to decontrol Lural gas prices? "I su et any-
<br />boay you to to is going to hesitate to Ik for
<br />tear that i might make somebody think bout
<br />that ago' 'Swenson said.
<br />But S enson said it is possible the ruling ill
<br />"(ores any further talk about an import e
<br />and a omestic tax to match an import fee
<br />crud oil), because this big a bite is coming ou
<br />o[ t producers' pockets." The combination of
<br />sta and federal taxes on the oil industry, he
<br />sa' ,has gone "just about as deep" as it can
<br />o producers pockets.
<br />But not everybody was surprised at the
<br />court's decision: Bill Leach, president of the
<br />b~ 8 ~ S 3 Rk~ ,n1,a t~7~c.,rs
<br />Camp Bird Mine sold
<br />AssoruleJ Press
<br />The Camp Bird Mine property
<br />southwest of Ouray has been sold by
<br />Federal Resources Corp. of Salt
<br />Lake City Gl Gila Mines Corp. of
<br />Phoenix, for b5 million plus a re-
<br />tained royally.
<br />The Camp Bird Mine, a gold and
<br />silver mine, was operated in fron-
<br />tier days by Tom Walsh, who made
<br />enough money from it to buy the
<br />diamond for his daughter, Evelyn
<br />Walsh McLean,
<br />John Loss?, Federal Resources
<br />president, said that under the agree-
<br />ment proceeds will be used to help
<br />repay $5.z million in loans-
<br />Federal Resources has su[fered
<br />financial problems in recent years
<br />because of the deteriorated urani-
<br />um market.
<br />Davis, president o! Gila Mines,
<br />said his company plans to have a
<br />joint venture project on the mine,
<br />which has been closed since 1981.
<br />He said full-scale operation would
<br />be reached within 15 months.
<br />Cila Mines has entered into an
<br />agreement with Haven Develop-
<br />ment Co., a privately held North
<br />Carolina company, to which Gila
<br />Mines sold the Camp Bird mill on a
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