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Show Mr. Weston Bourret Utah Construction & Mining Co. 550 California Street San Francisco, California Paradise, California July 16, 1964 RECEIVED JUL 20 1964 Dear Wes; Thank you for your letter of the fifteenth which reminds me that I missed seeing you last time I was in San Francisco. Recalling your resent interest in proven or developed mining properties, I had in mind bringing to your attention a semi-developed and proven copper deposit in southern Mexico which may be available on fair terms. There are 6,000,000 tons of 2.75% copper ore occurring as bornite and chalcopy-rite in a large breccia pipe well proven by existing development; or an estimated 9,000,000 tons of 2% copper ore in the same pipe. This ore occurs without appre-ciable pyrite or other sulphides so that a relatively high-grade and clean concentra- te is readily obtainable. The owners, a company which is required to limit or divest itself of some of their present holding in Mexico, can insure good titles, economic studies and detailed technical data. I consider this an exceptional opportunity under the modified tax and mining regulations and believe it may be of interest to you if you can overcome your director's stated predjudice against operating in Mexico. I also learned of a promising disseminated copper and molybdenum deposit while I was in the Yukon in June, but this is still a prospect. Hope that you are finding the new endevours, interesting and rewarding with best regards, Sincerely, Al Rodriquez 5845- Pentz Road Paradise, Calif Tel. 877-2417 D-1.1 6-62 INTER-OFFICE CORRESPONDENCE Date: August 25, 1964 To: WESTON BOURRET J. E. PHEBUS From: Sub: INGUARAN COPPER, MEXICO Ref: Al Rodriguez phoned August 24th to see if we had made any decision concerning the Inguaran Copper deposit in Mexico. He was leaving for New York to visit Koening of Cerro Corporation and wanted to indicate Utah's interest, if any. I mentioned that we had received a translation of the geology report from "Mineral Wealth and Mineral Deposits of Mexico" but had not studied or discussed it further prior to your vacation. Therefore no decision had been reached and at this time it would be best not to indicate any interest. Al cautioned that the geologists who prepared the report considered this deposit as several veins and not as breccia pipe. He has additional reports of his own and the property owners have substantial information which would be available to see if we have a genuine interest. The U. S. Dept. of Commerce report on Mexico (Feb. 1964) confirms the information given by Al Rodriguez concerning Mexicanization. On July 20, 1963, the Ministry of Finance decreed that foreign mining companies can become "Mexicanized" by setting up an irrevocable deposit in trust of a majority of the company shares for subsequent sale by the trustees to qualified Mexican buyers. The price, established by the company with Ministry approval, must be stipulated in the trust agreement. Companies which elect to dispose of a controlling interest in this manner are eligible to receive tax assistance. Tax exemptions under Schedules II and VII of the Mexican Income Tax Law amount to 40% tax remission for small and medium sized mining operators and those who exploit new mines or mines not worked in 10 years. For those who do additional prospecting and exploratory work an additional 10% tax remission is available. We should advise Al if there is any interest for Utah to enter Mexico on this type of venture. Jim JEP:g D-1.1 6-62 INTER-OFFICE CORRESPONDENCE Date: August 25, 1964 To: WESTON BOURRET J. E. PHEBUS From: Sub: INGUARAN COPPER, MEXICO Ref: Al Rodriguez phoned August 24th to see if we had made any decision concerning the Inguaran Copper deposit in Mexico. He was leaving for New York to visit Koening of Cerro Corporation and wanted to indicate Utah's interest, if any. I mentioned that we had received a translation of the geology report from "Mineral Wealth and Mineral Deposits of Mexico" but had not studied or discussed it further prior to your vacation. Therefore no decision had been reached and at this time it would be best not to indicate any interest. Al cautioned that the geologists who prepared the report considered this deposit as several veins and not as breccia pipe. He has additional reports of his own and the property owners have substantial information which would be available to see if we have a genuine interest. The U. S. Dept. of Commerce report on Mexico (Feb. 1964) confirms the information given by Al Rodriguez concerning Mexicanization. On July 20, 1963, the Ministry of Finance decreed that foreign mining companies can become "Mexicanized" by setting up an irrevocable deposit in trust of a majority of the company shares for subsequent sale by the trustees to qualified Mexican buyers. The price, established by the company with Ministry approval, must be stipulated in the trust agreement. Companies which elect to dispose of a controlling interest in this manner are eligible to receive tax assistance. Tax exemptions under Schedules II and VII of the Mexican Income Tax Law amount to 40% tax remission for small and medium sized mining operators and those who exploit new mines or mines not worked in 10 years. For those who do additional prospecting and exploratory work an additional 10% tax remission is available. We should advise Al if there is any interest for Utah to enter Mexico on this type of venture. Jim JEP:g |
