Golden Eagle gold find raises red flags

Article Abstract:

Golden Eagle International Inc. of Denver, CO, is claiming to have discovered a gold mine in a remote jungle of Bolivia, called Cangali. In May 1998, the company released results of a geological study which showed that Cangali has a gold resource of 157 million ounces. Fearing that the claims may turn out to be another hoax similar to Bre-X, the US Securities and Exchange Commission halted trading of the company's shares on Jun. 24, 1998, and launched a review of the claims. The review, however, showed that there were errors in the results. The SEC is considering whether to file a lawsuit against the company for the May 1998 release of the geological study.

Comment:

Claim of gold mine discovery has generated much concern from regulators

Colorado, Golden Eagle International Inc.

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Bre-X investors say Barrick should pay

Article Abstract:

Barrick Gold Corp., based in Toronto, Canada, should also be liable for a class-action lawsuit filed by Bre-X investors, according to documents filed in a Texas court. The lawsuit was filed by investors who lost C$3 billion when Bre-X collapsed in 1997 after its Busang gold project in Indonesia was declared a hoax. According to lawyers representing Bre-X investors, Barrick tested 135 samples from Busang in the fall of 1996 just as the firms were negotiating an agreement to develop Busang. The lawsuit also charges that 130 of the samples contained no gold.

Comment:

Should also be liable for a class-action lawsuit filed by Bre-X investors, according to documents filed in a Texas court

Ontario, Barrick Gold Corp.

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Bre-X building to go up for sale

Article Abstract:

Bresea Resources Ltd.'s office building in Calgary, Alberta, will be put up for sale by September 1998. The move comes after Bresea's court-appointed receiver, Price Waterhouse Ltd., has filed a petition before the courts for permission to have the property sold. Bresea, which is an affiliate of Bre-X Minerals Ltd., has been placed under receivership following its collapse in 1997, due to the company's controversial Busang gold mine project in Indonesia. Bresea and Bre-X faces a class-action lawsuit spurred by the fraudulent Busang gold find.

Comment:

Its office building in Calgary, Alberta, to be put up for sale by September 1998

Asset sales & divestitures, Alberta, Bresea Resources Ltd.

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