first stage of development program completed at pauma valley three labor negotiations completed favorable trial court decision in lucky me shareholder suit utah proposal to acquire assets of the bunker hill company w drew leonard elected vice president at pauma valley utah completed the first stage of its development program this year two subdivisions totaling 205 lots were completed with 30 of these lots being sold included in these 30 lot sales were 4 condominium adobe cottages four other condominium cottages remain unsold the pauma valley country club increased its membership during the fiscal year to 175 members three labor negotiations were completed during the past year at lucky me at shirley basin and at our navajo mine all of the resulting agreements are for terms of three years on october 2 1967 the united states district court at cheyenne wyoming rendered a general judgment in favor of utah and the other defendants in the lucky me lawsuit this suit arose out of the 1960 merger of lucky me uranium corporation with utah construction & mining co and was instituted by a former lucky me shareholder who alleged misrepresentations and sought to have the court fix new stock exchange ratios the plaintiffs appealed this decision subsequent to the end of our fiscal year also after the end of our fiscal year on december 19 1967 utah construction & mining co reached an agreement in principle to acquire all of the assets of the bunker hill company by an exchange of stock bunker hill mines refines and markets nonferrous metals including lead zinc and silver if the transaction is consummated following necessary shareholder approvals this addition to utah would provide further mineral diversification and greater underground mining capability terms of the acquisition proposal would involve the exchange of 45/100 share of utah common stock and 20/100 share of a proposed new 5 convertible preferred stock for each share of bunker hill common stock now outstanding the transaction is subject to approval by shareholders of the bunker hill company and necessary changes in capitalization are subject to approval by shareholders of utah construction & mining co meetings for these purposes are to be called as promptly as possible in december 1966 w drew leonard was elected a vice president of the company mr leonard continues also as corporate controller the position he has held since 1962 no single factor will aid our future growth more than the organizational strength we have developed through the years we have an able management group balanced in age and experience and ready to cope with change and a work force whose loyalty energy and capabilities are of the highest order another of our great assets is the strong support that our clients and customers provide us and of course we are deeply grateful for the loyalty we receive from you our shareholders it is our hope that we continue to merit your confidence as we face the challenges and opportunities of the future respectfully yours utah men and resources nd general manager opposite the navajo mine's 45 cubic yard walking dragline moves overburden 24 hours a day here it works at night exposing coal which will be mined later and ultimately fed into arizona public service company's generating plant