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To: Mr Metals who wrote (25)5/28/1998 8:28:00 PM
From: stuffbug  Read Replies (1) of 39
Better be careful boys. There's no floor on the additional
shares. If the stock remains at US 0.45 for ten days after this deal closes, RIO will be able to purchase approximately 6 million more
shares for $2.5 million. This will give RIO over 30% of the company
(plus the option to earn 60% of the deposits) for $4 million plus
exploration costs. This assumes that the statement regarding 24 million shares fully diluted includes these additional shares that
RIO may eventually purchase. It is in RIO's best interest to keep the stock as low as possible until they have purchased their additional
shares. Let's hope that there is some sort of trading restriction on the shares just purchased by RIO. Otherwise, RIO could sell these shares to depress the stock price and then pick up millions of very
cheap shares.

This is a great deal for RIO. It remains to be seen whether it is a good deal for AMCD shareholders.

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