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Stephen W. Seifert <br /> January 13 , 1993 <br /> Page 7 <br /> Rockdust plant 500-700 , 000 500 , 000 <br /> $5,500-7, 660, 000 $6,434 , 000 <br /> Less reclamation costs 1 ,500-2 , 000, 000 1 , 750, 000 <br /> $3,550-6, 160, 000 $4 , 684 , 000 <br /> Boswell Sale <br /> We previously have advised you that there have on- <br /> again, off-again contacts with a Utah group, now known as <br /> Redstone Development Company, headed by William (Garth) Boswell . <br /> Boswell expresses an interest in purchasing the mine for further <br /> mining operations and for industrial development. <br /> On December 4 , Resources received an offer from Boswell <br /> to purchase all assets of the company for $6 million, less <br /> amounts paid previously by other buyers for Resources ' equipment <br /> and real property. Redstone stated that it would "assume full <br /> and all responsibility for environmental reclamation of all MCR <br /> properties . . . " <br /> Resources responded to the offer on December 8. The <br /> response offered to sell all assets for $6 million, less amounts <br /> received from M&E from equipment sales, but not less the amounts <br /> received for other assets (such as the 160 acre parcel which sold <br /> for $160,000 and which was excluded from the assets to be <br /> purchased by Geneva Steel for $6 million) . Further, Resources <br /> stated that the assumption of reclamation liabilities would <br /> require not just Redstone's promise to assume responsibility but <br /> would require the deposit of cash or a surety bond in the amount <br /> required for reclamation, so as to cause the MLRB to release <br /> Resources from all reclamation liabilities. Upon the escrow of <br /> $6 million plus the amount required for reclamation, Resources <br /> would seek Bankruptcy Court approval on an expedited basis, with <br /> sale approval to be obtained within 30 days. <br /> A sale to Redstone would cause the termination of the <br /> M&E contract. That contract permits Resources to suspend <br /> equipment sales upon entry into a contract to sell the mine site <br /> and load-out facility to a new operator as an operating facility. <br /> The suspension may not extend beyond 90 days without M&E 's <br /> consent. If such a sale is consummated, M&E is entitled to <br /> recover all unpaid "Costs of the Work, " as that term is defined <br /> in the M&E contract, plus 12% interest on all Cost of the Work <br /> and an upset fee equal to 13% of the Cost of the Work. My <br />