An article in the June 29 issue of The Northern Miner titled “Newfields sees cash flow start by late 1987” contains numerous erroneous and totally misleading statements.
Newfields Minerals states that, by production, they expect to have increased their share of the Spotted Horse mine in Montana by 30%, with Chelsea Resources increasing its interest share to 60% and Cimarron Exploration retaining 10%. Please be advised that no such arrangement is either in the works or is anticipated prior to or following production start-up in August, 1987.
The Spotted Horse mine is managed and operated by the Appaloosa Joint Venture, of which Cimarron as operator owns a 25% carried net profit interest; its partner — Chelsea — owns the remaining 75%. Newfields Minerals has no current interest in either the Appaloosa Joint Venture or in the Spotted Horse mine, and no such acquisition of equity interest from either of the partner’s respective holdings is planned. Consequently, if Newfields expects to have cash flow by late 1987, it will obviously have to come from some property other than the Spotted Horse mine. David L Giles, President Cimmaron Exploration Inc. Lakewood, Colo.
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