July 13, 1998

N7L2 -1652

BHP Finance International Inc.

550 California Street

San Francisco, CA

USA	94104

Dear Sir,

RE: SECURITY DEPOSIT

This will confirm that we have received the required security deposit from the Banque Nationale de Paris, Toronto Branch.

The letter of credit, No.960080 in the amount of $20,000.00 CAD is acceptable and meets the requirements of the water licence. Enclose for your records is receipt number C 101067.

Yours Truly,

David Porter

Licence Administrator

cc	Water Resources Division.

DIAND, N.W.T. Region

Yellowknife, N.W.T.