A large mining company is planning a major new development. To provide funds and to permit
management to concentrate on the new development, the company would like to sell an operating
underground copper mine with remaining reserves capable of supporting only four years production.
They are prepared to sell the mine for A$25 million.
Omega Mining is considering purchase of the mine. They have carried out a due diligence
investigation of the property and have decided that the following data are reliable within acceptable
limits.