Our Annual Report this year is a basic one. Financially, we are watching our dollars closely. On March 15, 1991, a Billiton Minerals U.S.A. notified KCJV that it is "hereby giving 30 days notice of termination pursuant to Article 15" of its Exploration and Interest Earning Agreement. KCJV currently has 6 employees, who are maintaining and servicing leasehold interest.
I anticipate that Royal Gold will notify the company that it intends to terminate its mining permit with the company. While this will cause an interruption in our income, it presents the company the opportunity to develop and implement a mine plan on our entire holdings. The company intends to purchase equipment from KCJV that is vital to the operation of the mine and has determined that it is in its best interest to aggressively pursue mining operations itself.
The Osceola tunnel, which provides access to the Red Star project, remains open and ready for mining. We continue to solicit companies and individuals seeking an investment opportunity in gold. Work will begin immediately once working capital has been secured.
The Independent Auditors Report and Financial Statements were timely filed with the Securities and Exchange Commission (Form 10-K). Please notify me if you want a copy. The Statement of Loss shows a loss of $23,005. This amount is slightly less than depreciation and amortization scheduled under Expenses. At this stage of our corporate rejuvenation, I believe it is necessary to spend all available money pursuing financial associates compatible to expand gold mining on our mining claims.
Our Annual Shareholders meeting is tentatively scheduled for June 29, 1991, in Alleghany. It has been seven years since we held a meeting at the mine and believes it appropriate to do so again. Notice will be given in early June. We encourage you to attend.
Michael Meister Miller