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principally financial. Resources has no operating funds which can be used to <br /> pay the costs of sealing. You do not have to take my word for it. The company <br /> is under Bankruptcy Court supervision and, among other things, it files monthly <br /> financial statements to the Court. <br /> ...The effort to sell the mine as an operating concern, and the subsequent effort <br /> to salvage underground equipment for resale, required that the mines remain <br /> operational and ventilated until early October <br /> meantime, we are working to obtain funds to pay for mine sealing <br /> ,,wpenses. Since the demise of the Geneva Steel negotiations in July,. <br /> Resources has begun liquidating its assets. Equipment sales are just beginning, <br /> under supervision of the Bankruptcy Coup. I would anticipate that several <br /> hundred thousand dollars,will be received from equipment sales within the next <br /> sixty days. Resources also has obtained Court approval to sell a 160 acne parcel <br /> which lies outside the mine permit area. A purchaser has.been located and I <br /> anticipate that a sale will'close in mid-November. The sale price for this asset is <br /> $180,000. <br /> All assets of Resources, including the above-mentioned equipment-and 160 acre <br /> parcel, are encumbered#6ta secured lender, Sanwa Busienss Credit;Corporation <br /> �"San_wa"). According,.-Resources is legally unable to use-the-proope-ds-=from <br /> sale oothe equipment and the parcel without Sanwa's consent or Bankruptcy <br /> Court approval....Concurrent with the pending discussions between Resources <br /> and MSHA regarding the details of the sealing plan, Resources has requested <br /> Sanwa to make some liquidation proceeds available to pay for the plan. Such <br /> request was made by me in a letter dated October-5 A meeting was held <br /> between Resources and Sanwa on October 28 at which time Sanwa indicated <br /> the request is under consideration. I am hopeful that we will obtain Sanwa's <br /> consent for use of some funds for portal sealing later this month. At that point, I <br /> would.then move the Bankruptcy Court for authorization to use these funds to <br /> seal portals. <br /> The sealing plan approved by MSHA provides, in part: <br /> 1.0 Sealing will proceed as expeditiously as weather and seasonal conditions, <br /> Bankruptcy Court approval, availability of funds from the bankruptcy estate, and <br /> authorization, if necessary, by the Colorado Mined Land Reclamation Division...- <br /> will permit. <br /> 2.0 Mid-Continent will petition the U.S. Bankruptcy Court for authorization to <br /> expend funds realized from the sale of assets from the bankrupt estate for <br /> sealing .... <br /> Portal Sealing <br />