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'` ;~. <br />9r'itish Petroleu . <br />By Bill Epler <br />Staff Reporter <br />British Petroleum Company p.l.c., <br />following in the footsteps of other large com- <br />panies with major precious metals produo• <br />lion, has formed a subsidiary gold company, <br />and tr preparing to sell a small percentage of <br />ownership to the public to recover its 1o- <br />vestment. <br />Following dawn through the rhain o[ owner <br />ship, British Petroleum (BP) amounted Sep <br />tember 30th the formation of SP Gold Com- <br />pany, to be headquartered in Salt Lake City, <br />that will aw the gold deposits that have been <br />owned by AP and its subsidiaries, including <br />Kemecott. <br />BP also amomced that BP Gold, newly- <br />formed by the BP Minerals America Umt, has <br />Nee a registration statement with the <br />Seciaities and Exchange Commission far a <br />proposed initial public offering of 7.5 million <br />shares of cemmoo stock, with the offering <br />price to be determined later. <br />Only a week before, BP America Inc., BP's <br />Cleveland-based domestic arm, had aa- <br />namcod the combining o[ the assets o[ Kea- <br />nerntt Corporation of Salt Iake City and Am- <br />aelce Minerals Enc. of Denver into a new sub <br />sidiary, BP Minerals America, that will be <br />headquartered in Salt Lake City. <br />(New, if you've got this all straight you're <br />doing better than we arel ) <br />The proposed stork offering in BP Cold will <br />consist as approximately 3.75 million shares <br />for sale in the U.S. and an equal number o[ ed- <br />ditlanal shares to beoffered internationally. <br />Upon completion of the proposed offering, <br />BP will hold approximately 90 percent of the <br />common stock ad BP Gold and the cash <br />derived from the stacJc sale. <br />Tom Koch, manager of media reletiom for <br />BP Americe, said intent of forming the gold <br />subsidiary is to create an environment in <br />`.~.,~~~~ III IIIIIIIIIIIII'll ~gfa <br />operations ma opera~e mace uca,uy than if <br />operatlom were induded in m agenda 1o- <br />duding other minerals. <br />However, it bas been separately noted by <br />industry obpervets that some of the big com- <br />panies ere dpyndsring how mocti longer what <br />they believe is a bubble in high gold price <br />will continue. A number have formed <br />separate suhsidm sold 10 ar 15 per <br />cent of their stock the public to get beet <br />their investment and, in some rases, mare <br />than that. . <br />As long as high prices and good proBta coo- <br />time, the parent firm will receive 85 to 90 per <br />cent of the dividends. And tf the bottom fella <br />nut, the parrot rnmpany, with its original in- <br />vestment intact, escapes the [allwt. _ <br />BP Cold will be controlled by a board of <br />directan, five drawn from BP end two ex- <br />ternal. A. Dan Rovig, a former Ameelco <br />executive, will be president and ceo of the <br />new company and Keith R. Huller will be vice <br />president operations. <br />Rovig is vice president gold [or the sew BP <br />Minerals America. <br />~~ary <br />acid. <br />The <br />Provide <br />The byprr <br />Bingham G <br />eece+d ar tt <br />to the mtloo <br />Industry a <br />siphoning o[1 <br />tom line of B <br />ann. <br />Canyon, BP <br />_,:..r <br />i Canyon operaion will <br />and tolling services to BP <br />uroductlon. ~, a' <br />t produMim aJ gold from <br />i tradltlaoally made Utah the <br />argent gold produdng state <br />mnY year. <br />van are wandering how this <br />old profits will effect the tot- <br />em CenYm's coPPw' i~~ <br />.~ <br />1'r~anlt of Re <br />Thomas R. I <br />owner d Fran <br />ar May srd In <br />A native i <br />received his h' <br />airy d wlacom <br />at the Uoivere <br />while ca <br />warted far ( <br />Mining c~P <br />Ceodafa Sysl <br />From 1971 <br />manager for <br />naase Comw <br />According to the BP amomcemeat, BP <br />Gold will own all gold operations embraced in <br />the combination o[ Kemecott and Amaelco. <br />That indudes the byproduct gold produo- <br />tlm from the Bingham Canyon copper mine. <br />In previous yeah, that has ranged from <br />250,000 to 300,000 orates of gold a year. <br />It also includes Kemecott's Bamey'e <br />Canyon prospect five miles north of the <br />Bingham pit, as well as Kennerntt's Rawhide <br />and Cortez gold properties in Nevada. <br />In addition, it will include an 80 percent 1o- <br />tarsal in a New Guinea gold project with a <br />potential of SOO,aao ounces amually. <br />In the meantime, BP Gold's total 1988 gold <br />production is expected to total Sd0,000 ounces, <br />South Dakota .. . <br />said, adding that the mining industrydid aup- <br />portthe Cive state bills approved in 1988. <br />Environmentalists Inffitrate <br />The new regulation were expected to be <br />drawn up by the South Dakota Department of <br />Water and Natural Resaacea, but en- <br />vtraommtalists s~+~-eaty called for a <br />pa6lic teak farce to be1P with that job. <br />A task force composed of represmtetlvea <br />tiara emiraomental grasps, the mining 1o- <br />dustry and the state department worked for <br />several mmths recently m the sew <br />ngu4tiam but were usable to reach a car <br />iisosus.. <br />the South Dakota Board M Minerals <br />evlraommt, whlc6 oversee the state <br />and mtural rrsounws deparlment, <br />ppe»vs some sort d neav rsgulatiam in <br />He noted that some of the en- <br />vvonmentalisfs who perlidpated in the teak <br />force now are promoting the Lawrence Cam- <br />tymoratorium propaeal. <br />In additlao, Zleake added, the so- <br />vironmental coalitiao has stated that regar <br />dlese of the new state regulatlata or the nub <br />come of the Iawreace County vote, the <br />coalition will take a moratorium ptsposal <br />before voter oo a statewide level. <br />"They have not been bargaining in good <br />faith," the director said. "They won't let the <br />(state) system (ot drawing up mhrlog <br />regulatlom) work." <br />Apparently, the environmental caalitlm <br />beileves the elate system is sot tough enough <br />even though m EPA study rates south <br />Dakota's surface mining eeguLti006 se Ming <br />equal to those is Celiforoia snd among the <br />toughest in the ration. Zieeke said. <br />in PAY DIRT for October 1987 <br />~~~~ <br />In 1977, 1 <br />Associates Cc <br />Subsidiary ca <br />plantlan and <br />varied and ext <br />copper, coed, i <br />gdd explorati <br />and the i <br />lane. <br />He his <br />am, a dal <br />rtes And Men <br />ologiat Thomas <br />o dies et 43 <br />ant, consultlng geotogisi and <br />and Associates, died of coo- <br />eao. He was L4. . <br />South Milwaukce, Funk <br />6elor's degree at the Univer- <br />i a~ an MS in geology in 19~ <br />of Arizaoa, where he was a <br />sting his studies, Funk <br />bee Cartier and Bear Creel <br />es. He was later employed by <br />e as an exploratloo geologist <br />1877, he was exploratim <br />anaroya La N1rke1, The Par <br />and Urania Exploration in <br />in and Range Province. <br />ant founded Frank and <br />silting Geologists in Reno. <br />paniea Included CMF E_ <br />'d<J 1.3cploration. He had a <br />slue back®wnd In porpl4yry <br />udum and, moat recently. in <br />y including early consultlog <br />Banrh gold deposit in Nevada <br />i Gulch gold deposit in Moo- <br />by his wile, Charlene; <br />his parents. <br />Cs~d and '"Canpr4Y Inc., based in <br />Scottadal0. has acehdred the Pam <br />Mountain Gol mine i~Hitf~tijM1 Colond0. <br />Gold and President Charles C. Mob <br />Uey September24th. <br />The price was 7.S.milBm eher'es <br />of Gold and ' it preferred stock. <br />Pam Mam Gold, an operetlsg raise, <br />lw assets of ears ~ deeded claims and <br />teoo,ooo a< equlpmeM, cola and <br />Mlnaals said. <br />Ore at the mice stand at 8 mWtm <br />etiehtc yards, ' tb a ciurrat market value a[ <br />mare then;30 psi CUb1c yard, the company <br />said. add'wg t operating caste avera6y <br />about i2 per c Yard (~ 1 <br /> <br />