Bayport International Holdings Inc. (BAYP)

[terry_mathews]

from the disclosure statement.

On September 16, 2011, the Company entered into an agreement with two groups of private investors pursuant to which the groups agreed to fund 100% of the costs for mining and commercialization of the Company’s WOW mining claims in exchange for the issuance of 60,000,000 shares for one group and 65,000,000 shares for the other group of the Company’s common stock, and an aggregate of 70% of the proceeds from such mining operations. The two investor groups subsequently divided and distributed their shareholdings. The two groups of private investors delayed moving forward with funding and operations until all the administrative filings were in place with the US Bureau of Land Management (BLM) and after the Company becomes current in its obligations to OTC Markets. The two groups have subsequently sub-divided these holdings.

Now what the company said was 70% of the proceeds for outlaying all the capital and all the resources. I am not sure how you came to this conclusion.

From reading through the company’s filings, the company will only get Net Profits of 25% of what is pulled out of the ground because of not having to account for any of the expenses to sure up the property and fund the Small Scale Mining Operations. So…

Definition of net profit - Often referred to as the bottom line , net profit is calculated by subtracting a company's total expenses from total revenue.

Not that I believe any of your numbers based on the success of placer mines in Utah but I figured I would at least address this initial error in calculations. since start up costs are significant up front and will only stabilize once production is in a full capacity you can assume a large expense fee for awhile. How much do you think it costs to just get operations up and functioning with equipment and over how long a period when nothing is being produced?