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Show National Enterprise , May 26 , 1976 Page Three Financial Woes Threaten Foreign Mineral Dependence Whod have guessed in equated immorality with any 1901 standing among the rigs investment involving risk. at the Spindletop, Texas oil While tax incentives still field, the U.S. would be at the exist for mining, partnership mercy of a band of Arab oil drilling funds and private ministers in less than a cen- placements will continue to tury? The likelihood seemed finance some operations. But probably as remote then as the if Congress can repeal the U.S. becoming dependent on depletion allowance for the oil foreign mineral sources does industry, whos to say they wouldnt do the same to today. But in the first month of the mining. (Domestic oil producBicentennial year, the U.S. tion has steadily declined imported more oil than it since its repeal.) Any combination of joint produced. And according to the U.S. Geological Survey, on dependence foreign sources of primary minerals ranges from 90 to 50 percent. Once the backbone of U.S. industrial strength, the minerals industry faces a bleak future indeed. Environmental controls, federal land regulation, taxation, inflation,, and government regulatory intervention have compounded the problems inherent in the mining industry. Not the least of their worries, however, is financing. Hungry for Capital Probably no other industry as capital intensive as mining. Where theyll find the millions necessary to develop the wealth yet buried beneath the ground is anybodys guess. That it won't be from the equity markets is almost certain. SEC policies of investor protection have somehow is lished market, stable prices and sufficient shares trading to make them highly liquid. To wit, most OTC stocks do not qualify.) Until recently, the U.S. Office pf Mineral Exploration funded exploration efforts on a 7525 participation basis. But that office was dissolved this year in Washingtons efforts to tighten pursestrings. OME funds became loans subject to repayment when exploration produced an ore venture arrangements are body that was economically possible but the expense a recoverable, and written off company can incur in finding a when they were unsuccessful. The Office of Mineral partner willing to put up can cash be prohibnecessary Exploration was really more itive. symbolic than anything else, said Jack Carlson, former Banks Hesitant Assistant Secretary of the Interior. David Weston, president, Banks certainly aren't anxious to make commercial Rex Montis Silver Company loans for venture operations. (OTC .75, 1.00) takes issue Even with proven reserves, with Carlson on that point, the hazardous nature of the however. Rex Montis, a year, industry invites problems that ago was the last to obtain an do not lend themselves to OME loan. Together with commercial bank financing, another OME loan made in says Ed Authur, a Salt Lake 1974, Rex Montis had uncovbanker of nearly twenty-fiv- e ered considerable mineralizaWater can fill a tion of silver, lead, zinc, and years. tunnel making the ore inacces- gold in a mine high in the Sierra Nevadas. sible, for example, he said. Without sound collateral Need Production Loans like U.S. government securiWhere the OME went awry, ties, savings deposits, or other Weston claims, was in not also highly marketable securities, direct financing is out of the making production loans. Adverse taxation and govquestion, he said. (Marketable securities, he defines as ernment price controls have Continued on Page Ten stocks with a broad and estab LAKE Technology Inc. (OTC 2.50, 3.00) and Exxon Enterprises have reached final agreement to form a new corporation called Silag for further development of a process of converting rice hulls to silicon carbide. The company will be incorporated in DelaCITY-Com-me- rcial ware. Comtec and its wholly owned subsidiary, Hulco, will grant exclusive license of the process they developed to the new corporation in exchange for 20 percent ownership. Exxon will receive 80 percent of the shares of Silag stock in exchange for SI 00,000 cash and their technical information regarding the silicon compound process. Silag represents the culmination of research efforts by Comtec-Hulcand Exxon over the past year. said Lionel Drage, president of Comtec. Exxon, in 1975, contributed for $250,000 to Comtec-Hulc- o research of the process. Silag will further refine the --process and eventually proceed into manufacturing of silicon carbide products and composite metals, he added. ;; According to terms of the agreement, Exxon will contribute additional funding up to DENVER-K.R.- Petro- M. leum Corporation, Denver, (OTC 1.50, 1.875) announced initial test results of a 6,100 foot dual zone Upper Frio oil and gas discovery in San Patricio County, Texas approximately 30 miles north of the town of Corpus Christi. The Marie Welder Ford No. 8, a 4,000 foot stepout from existing production, produced 118 barrels of oil, 40 barrels of salt water and an undetermined amount of gas through a 1064 inch choke during a 30 hour flow test. Perforated interval was 6,081. to 6,085 feet according to the Company, and flowing tubing pressure was 1,100 pounds. A second UpperFrio zone perforated from 5,918 to 5,923 feet flowed at a rate of 1.3 million cubic feet of natural gas per day with an undetermined amount of condensate through a 1264th inch choke with flowing tubing 'pressure of 1,675 pounds. The Ford No. 8 is being equipped to' produce both zones simultaneously in the same well bore according to K.R.M.president Bob Kadane and should be on production by early June after gas gathering and salt water disposal lines have been installed. ao 0 0 T3 O o . O Cl 1 That s Okay, but better keep this ad -- q "q about gold stocks, exploration, O mining, legislation; gold in economy, and Q read expert writers and O comments. O ALeadingGoldNewspaper0 Since 1933 2. no FREE o o Your Choice of Two Popular Books O Gold! The Ultimate Hedge or -- Panning for Profit" sent with O $6Per Year Issued Monthly Money refunded o O if not delighted AMERICAN GOLD NEWS O Gold-Gol- d Gold-Gol- d Gold-Gol- d yu Covered With over 1600 stock quotations, news articles, earnings reports, corporate profiles, market columns and feature stories, the National Enterprise covers the OTC securities market from coast to coast. behind closed doors of make it our business to know what's going on in the industry-fro- m We'll laws and securities keep you posted on the regulations. corporate board rooms to changing latest developments and abreast of current trends. We The National Enterprise gives your investments the kind of coverage they deserve. Please send me a one-ye- ar subscription to the National Enterprise. Enclosed is $18.00. NAME. ADDRESS. I CITY STATE. ZIP- oo Q P.O.BOX 457, DEPT. HE ,6 o lone. CA. 95640 o o. o a ao handy in a few short months you o may wish that you had been taking AGN. Join those in the know. Learn Q O Subscription. $500,000 at which time Com- - sale price of silicon comtec is required to bear 20 pounds up to $10 million, Upon payment of such aggre- percent of the costs. A license agreement sets gate sum, Silag shall be forth royalty payments to relieved of further royalty Comtec of one percent of the obligations to Comtec-Hulc- 6o NOT INTERESTED? 22 Gold Comtec and Exxon Join in New Corporation to Research Process SALT KRM Reports on Test - Mail to: THE NATIONAL ENTERPRISE P.O. BOX 11778 SALT LAKE CITY, UTAH 84147 Gold |
