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Shore adds to its diamond tally
2004-10-22 14:47 ET - Street Wire
by Will Purcell
Ken MacNeill's Shore Gold Inc. continues to produce promotable quantities of diamonds from its Star kimberlite. The latest batches of material delivered another healthy haul and the company remains on track to exceed its 3,000-carat goal by a significant sum. There were no gaudy grades among the latest six individual batches of rock and there were none of the particularly large diamonds that have graced earlier portions of kimberlite. As a result, Shore's shares continued to slip away from a recent high of $3.15, reached early this month. Nevertheless, there are a few encouraging developments in the latest data.
The latest samples
Shore Gold processed another 1,447 tonnes of kimberlite over the first half of October, coming up with 222 carats of diamonds. That tally suggests a grade of just over 0.15 carat per tonne for the latest five batches of rock, all of which came from the 235-metre level that lies within the promising early Joli Fou phase of kimberlite.
The latest material brings Shore's total tally to 14,576 tonnes and 1,813 carats. That works out to an average grade of 0.12 carat per tonne, although the count from the higher-grade phase is a more meaningful tally. Shore processed 10,022 tonnes of early Joli Fou kimberlite so far, recovering 1,617 carats. That cumulative sample suggests a grade of 0.16 carat per tonne.
The upper layers of Star contain the late Joli Fou kimberlite, which has a markedly lower grade. Shore encountered the material in its early samples and only 2,675 tonnes of rock can be fully attributed to the lower-grade region. That rock contained just 65 carats, suggesting a grade of 0.024 carat per tonne. That lower-grade material accounts for about 20 per cent of the Star kimberlite.
With all the remaining rock slated to come from the richer regions, Shore's 25,000-tonne test seems likely to exceed the original 3,000-carat target handily. At the current rates of recovery, the complete sample could deliver something close to 3,500 carats. That would imply a sample grade of about 0.14 carat per tonne, but such an average is unlikely to be representative. As a result, a detailed look at the various parts of the pipe offers a more meaningful assessment.
The southeastern drive
Three of the six individual samples originated along the southeastern drive, which is responsible for most of the better grades so far. The rock weighed about 717 tonnes and the diamond haul ran to 111.4 carats, good enough for a grade of 0.155 carat per tonne.
That was significantly below what came from the southeastern drive in previous lots. Shore processed over 3,800 tonnes from that zone in earlier batches, producing an average grade of a bit more than 0.21 carat per tonne. The cumulative tally for the southeastern drift now stands at 4,559 tonnes and 937 carats, still good for a 0.206-carat-per-tonne grade.
It is reasonable to dismiss the lower outcome as the normal statistical variation expected with smaller samples. The best of the individual sample grades this time out came from a 143-tonne batch that graded just 0.185 carat per tonne. In its earlier samples, Shore produced grades of about 0.30 carat per tonne from four individual samples and two others topped the one-quarter-carat-per-tonne mark. Shore's other individual batches from the southeastern region appeared comparable with what the company found in the current samples.
The latest three lots of material from the southeastern drift also had a somewhat less favourable diamond size distribution. The average diamond weighed about 0.11 carat, while the zone had previously been averaging nearly 0.15 carat per diamond.
The lower value might seem significant at first glance, but once again the results seem in line with what Shore produced from its comparable samples over the past few months. In fact, the healthy diamond size distribution within the richest samples from the southeastern samples is primarily responsible for inflating the average stone size. Those top six samples had an average grade of nearly 0.30 carat per tonne, combined with an average stone size of just over 0.20 carat.
The southeastern drive yielded another diamond weighing more than eight carats, even without the extra oomph added by a higher-grade sample. The 8.03-carat diamond lacked the promotability of some of the earlier gems however, because of its off-white colour classification.
The northern drive
If investors found cause for disappointment in the southeastern samples, there was reason for optimism in three batches of rock from the northern zone. Shore processed 730 tonnes in three batches from this area, and the 111 carats yielded a grade of 0.152 carat per tonne.
That was marginally higher than what the company found earlier. The earlier portions of rock from the northern zone produced a grade of about 0.138 carat per tonne from 1,028 tonnes of rock. The latest samples have boosted the count to 254 carats from 1,758 tonnes, for a grade of 0.145 carat per tonne.
A consistent average diamond size accompanied the somewhat healthier grade. The latest three batches contained 991 diamonds averaging about 0.112 carat, matching almost exactly while the earlier samples delivered. The northern area yielded a 6.28-carat diamond, although much of the promotability of that stone disappeared with its off-white colour classification. The northern samples did produce a 3.07-carat white diamond, to go with a 3.12-carat white stone found in a southeastern sample.
The encouragement
As the Star sample progresses at the 235-metre level, the results offer increasing confidence that the average grade of much of the kimberlite in that area approaches 0.15 carat per tonne. The average grade of the sample at that level is inflated significantly by the presence of several higher-grade zones. The average grade of all the batches at the 235-metre level is about 0.19 carat per tonne, and if that value holds up, Shore's sample could net about 3,750 carats from 25,000 tonnes.
George Read, Shore's vice-president of exploration since 2003, believes the results from the 235-metre level will prove representative of the early Joli Fou kimberlite in general. That might seem a bit optimistic, as the company has processed about 3,700 tonnes from other levels when it dug its shaft.
That material yielded 426 carats, or about 0.115 carat per tonne, with an average stone size of 0.086 carat. Those values lag behind what the 235-metre dig is producing. It is too soon to read much of anything into that, as it would take just a few richer samples to rapidly inflate the averages elsewhere.
Mr. Read expected the variations in the grades of the Star samples. Shore anticipated that its individual tests would deliver grades between 0.10 and 0.30 carat per tonne, with a few possibly straying beyond those values. Such variations are normal for any kimberlite body, but it is often the comparatively small richer zones that contribute much of the promotability of a diamond deposit. That seems the case at Star.
The players
Mr. Read came to Shore from Canabrava Diamond Corp., where he had been president until the company laid plans to merge with Superior Diamonds Inc. last year. A diamond explorer for two decades, Mr. Read worked on several gem projects in Canada with De Beers. He emigrated from South Africa in 1996, setting up shop in Canada as a consultant.
Mr. Read has been a determined diamond hunter, occasionally outlasting the patience of his employers. He worked on Victoria Island with De Beers, and he picked up a project in the area for Canabrava after the diamond giant had abandoned the region. As well, Mr. Read's belief in a Brazilian project outlived the patience of two employers. SouthernEra Resources Ltd. was first to abandon the play, while Mr. Read was its project manager. He made the jump to Canabrava, which unloaded the Brazil play in the summer of 2003.
Mr. Read was just one of several appointments made by Shore during a busy 2003. The company added two directors of Bill MacNeill's Claude Resources Ltd. to its board. The move was not a shock, as Claude's Mr. MacNeill is the father of Shore's president, Ken MacNeill. Claude's vice-chairman, Arnie Hillier, joined the board of Shore, along with Neal McMillan, who has been Claude's president since 1996.
An accountant by trade, the Saskatoon-based Mr. Hillier is the chief executive officer and chief financial officer of Claude. He has been with the elder Mr. MacNeill at Claude since 1991. Before that, he handled financial matters for Cameco Corp. Cameco was one of the first companies to hop aboard the Fort a la Corne diamond bandwagon back in the late 1980s, although the project never had a top billing with the big company.
Shore's other Claude director also has a financial past. A resident of Furdale, just south of Saskatoon, Mr. McMillan spent 16 years with RBC Dominion Securities Inc. before he jumped to become president of Claude in 1995. In 1975, Mr. McMillan was elected as the Liberal member for Kindersley in the Saskatchewan legislature. An opposition role did not appeal to him and his stint as a politician lasted just three years. Mr. McMillan is also a director of Cameco.
Harvey Bay was another 2003 appointment to Shore's board. The Saskatoon-based Mr. Bay is another accountant who has specialized in the mining sector for more than 20 years. The chief financial officer of Shore since late in 2002, Mr. Bay also has a link to Cameco. He counted beans for the company back in the 1980s.
Don't miss this TV footage ...
Very interesting newscast of CMKX Fort a la Corne claims country.
This is TV coverage of Saskatchewan Diamond Country. Shore Gold Inc. could be sitting on a diamond Jackpot.
Here's the link to replay it.
http://www.cbc.ca/national/
Click on "WATCH THE NATIONAL ONLINE"
Goto minute 42:36.
Last nights news on Shore Gold's Star Project in Fort a la Corne Saskatchewan - Could be they're sitting on a Jackpot.
Here's the link to replay it.
http://www.cbc.ca/national/
Click on "WATCH THE NATIONAL ONLINE"
Goto minute 42:36.
Last nights news on Shore Gold's Star Project in Fort a la Corne Saskatchewan - Could be they're sitting on a Jackpot.
Here's the link to replay it.
http://www.cbc.ca/national/
Click on "WATCH THE NATIONAL ONLINE"
Goto minute 42:36.
Eliot Spitzers next target.
http://www.insurancenewsnet.com/article.asp?a=1&lnid=235655696
Shore Gold received quite a lot of air time on the CBC National at 6:00PM PST this evening. It should be shown again on the late night news. Usually the second edition is somewhat abbreviated.
Gump90, crunch time will be when Shore Gold releases the valuation on its 'white goods'. Is Christmas too soon?
DTC Stock Borrow Program. [A critique]
Subject: File No. S7-24-04
From: H. Glenn Bagwell, Jr.
July 12, 2004
Re: Proposed Rule S7-24-04
Ladies and Gentlemen:
Thank you for the opportunity to comment on SEC Proposed Rule S7-24-04, entitled Issuer Restrictions or Prohibitions on Ownership by Securities Intermediaries, Release No. 34-49809 --herein, the Proposed Rule--. To summarize, the SEC should NOT implement the Proposed Rule until such time as the SEC can reasonably guarantee the integrity of the clearing and settlement system in the U.S. securities markets for all securities publicly traded in the United States.
It is disappointing that more comments have not been received by the SEC on the Proposed Rule. Most of the attorneys and others with whom I have spoken regarding the Proposed Rule have not bothered to comment on it, because of a general understanding that any demands the Depository Trust and Clearing Corporation --DTC-- makes upon the SEC are promptly met by the SEC, irrespective of any other considerations.
The general feeling is that legal action by state regulators and private litigators is going to be the only solution to the devastating problems associated with, first, naked short selling, and second, DTC and the deleterious effects of its Stock Borrow Program on the integrity of the U.S. clearing and settlement system. It is my hope that such cynicism is not warranted.
As the SEC is aware, naked short selling, and the resultant market manipulation, have done severe damage to the U.S. markets, especially for micro-cap securities. The actions of the various market makers, Canadian and other offshore brokers, U.S. brokers that take the short sale orders knowing they are not backed by borrowed shares, offshore investment funds, money launderers, terrorist financiers, etc., have cost the U.S. investing public untold billions and destroyed the market value of numerous American companies. This naked short selling would not be possible without the DTC Stock Borrow Program.
The SEC has acknowledged that settlement failures can exceed the entire floats of victim companies. This does not seem possible without the DTC Stock Borrow Program. Where else can settlement failures hide for extended periods?
The SEC and the NASD have observed these actions for years, and know that naked short selling and the resultant settlement failures are an astronomical contingent liability on the clearing firms, market makers, brokers, and of course on DTC itself. If the manipulators and their co-conspirators short sell more shares of an issuer than exist, how does that liability get satisfied? Assuming the manipulators can not kill their victims or force sufficient additional dilution through financing at artificially low prices, how will the trades ever get settled? And did the participants think this could go on forever?
A small number of companies have tried to extricate themselves from the monopolistic and self-serving clearing and settlement system run by DTC, by moving to certificate-only trading. The nature and issuance of the securities of a corporation are a state corporation law matter, and within the rights of the companies to determine. Of course, the SEC regulates transfer agents, and clearly has the right to set the rules for them as the SEC deems appropriate, so long as the rules are constitutional. Setting aside the potential anti-trust issues with further extending the de facto monopoly of DTC on the clearing/settlement system, is it appropriate for the SEC to, in effect, eliminate the right of a public company to ensure the integrity of its capital structure? Can the SEC guarantee the integrity of the capital structure of issuers subject to the machinations of the DTC Stock Borrow Program? Will the SEC allow issuers to clear through an alternative book entry system, such as its own in house system? Or is DTC to be the only game in town? As the SEC can imagine, that would look very suspicious to the investing public and to the federal judiciary.
Since the SEC acknowledges that naked short selling can lead to a situation where investors claim to own more shares of an issuer than exist, thus creating maddening problems for the issuer--such as determining who is a real shareholder and who has been defrauded into purchasing a counterfeit share, e.g., for voting and dividend distribution purposes--it is not appropriate to forbid companies from taking the only steps now available since the SEC in June, 2003, allowed DTC to forbid issuers to withdraw from the DTC system to ensure the integrity of their capital structures.
I understand the SEC has a goal of increasing the speed of the clearance/settlement process, and this is an appropriate goal however, it can NOT be appropriate to ignore the current lack of integrity in the system just to increase its speed.
While the industry may clamor for more speed, it is the investor who needs protection from the market manipulation facilitated by naked short selling and prolonged settlement failures, and the investor will gladly accept a longer settlement period to ensure that he or she actually owns a real percentage ownership interest in his or her issuer. If this means that he or she must pay a little extra for a physical certificate, then that is an investment consideration for the investor. At least he or she will know that it is a real share, not a counterfeit naked short...whatever it is--perhaps an open ended stock futures contract with an unknown counterparty who may just refuse to deliver, ever?
The SEC first asked for comments on Regulation SHO some time in October, 2003. A version of the proposed rule that apparently allows market makers to continue to naked short sale when engaging in bona fide market making transactions has now been approved, but will not be in effect until January 5, 2005. If the industry can have at least 15 months to adjust their systems to meet the requirements of Regulation SHO, then surely the issuers that are subject to the market manipulation that necessitated Regulation SHO should have a reasonable period of time--at least 15 months--to take actions designed to determine the amount of damage done by said market manipulation and to try to correct it.
Of course, since in practice many DTC participants refuse to comply with the disclosure and delivery requests of the victim issuers whose securities they manipulate, even when the instructions are delivered by the NASD--how can they when doing so will expose their illegal behavior?--15 months is likely not enough time to get the necessary information.
If an issuer can not even find out who its real shareholders are, as permitted by the laws of the state in which the issuer is domiciled, what else can an issuer do? How can it avoid voter fraud via proxies in shareholder meetings? How can it properly account for the cash or shares delivered pursuant to a dividend distribution? Is the issuer liable if a real shareholder does not get to vote or receive distributions because a counterfeit shareholder got them instead? The Proposed Rule puts the issuer at the mercy of DTC and its participants. These have not proven to be trustworthy in the matters at hand.
The Proposed Rule should not be passed until the SEC is certain that naked short selling, at minimum when done for purposes of market manipulation, CAN NOT OCCUR, and when the SEC is certain that the DTC Stock Borrow Program is only used for its original stated purpose, to cover SHORT TERM settlement failures resulting from good faith delays in delivery of the transaction security. Please do not approve the Proposed Rule.
Thank you again. The SEC has the toughest regulatory assignment in the nation, and does a good job overall. These matters are difficult, and will not be resolved without the industry feeling a lot of pain--only because of the pain it has inflicted, directly and via its complicity with criminals, on the investing public. But the investing public and the integrity of the U.S. markets demand resolution, and the SEC can be the one to provide it.
H. Glenn Bagwell, Jr., Esq.
Raleigh, North Carolina
http://www.sec.gov/rules/proposed/s72404/hbagwell071204.htm
Letter commenting on the DTC Stock Borrow Program.
Subject: File No. S7-24-04
From: H. Glenn Bagwell, Jr.
July 12, 2004
Re: Proposed Rule S7-24-04
Ladies and Gentlemen:
Thank you for the opportunity to comment on SEC Proposed Rule S7-24-04, entitled Issuer Restrictions or Prohibitions on Ownership by Securities Intermediaries, Release No. 34-49809 --herein, the Proposed Rule--. To summarize, the SEC should NOT implement the Proposed Rule until such time as the SEC can reasonably guarantee the integrity of the clearing and settlement system in the U.S. securities markets for all securities publicly traded in the United States.
It is disappointing that more comments have not been received by the SEC on the Proposed Rule. Most of the attorneys and others with whom I have spoken regarding the Proposed Rule have not bothered to comment on it, because of a general understanding that any demands the Depository Trust and Clearing Corporation --DTC-- makes upon the SEC are promptly met by the SEC, irrespective of any other considerations.
The general feeling is that legal action by state regulators and private litigators is going to be the only solution to the devastating problems associated with, first, naked short selling, and second, DTC and the deleterious effects of its Stock Borrow Program on the integrity of the U.S. clearing and settlement system. It is my hope that such cynicism is not warranted.
As the SEC is aware, naked short selling, and the resultant market manipulation, have done severe damage to the U.S. markets, especially for micro-cap securities. The actions of the various market makers, Canadian and other offshore brokers, U.S. brokers that take the short sale orders knowing they are not backed by borrowed shares, offshore investment funds, money launderers, terrorist financiers, etc., have cost the U.S. investing public untold billions and destroyed the market value of numerous American companies. This naked short selling would not be possible without the DTC Stock Borrow Program.
The SEC has acknowledged that settlement failures can exceed the entire floats of victim companies. This does not seem possible without the DTC Stock Borrow Program. Where else can settlement failures hide for extended periods?
The SEC and the NASD have observed these actions for years, and know that naked short selling and the resultant settlement failures are an astronomical contingent liability on the clearing firms, market makers, brokers, and of course on DTC itself. If the manipulators and their co-conspirators short sell more shares of an issuer than exist, how does that liability get satisfied? Assuming the manipulators can not kill their victims or force sufficient additional dilution through financing at artificially low prices, how will the trades ever get settled? And did the participants think this could go on forever?
A small number of companies have tried to extricate themselves from the monopolistic and self-serving clearing and settlement system run by DTC, by moving to certificate-only trading. The nature and issuance of the securities of a corporation are a state corporation law matter, and within the rights of the companies to determine. Of course, the SEC regulates transfer agents, and clearly has the right to set the rules for them as the SEC deems appropriate, so long as the rules are constitutional. Setting aside the potential anti-trust issues with further extending the de facto monopoly of DTC on the clearing/settlement system, is it appropriate for the SEC to, in effect, eliminate the right of a public company to ensure the integrity of its capital structure? Can the SEC guarantee the integrity of the capital structure of issuers subject to the machinations of the DTC Stock Borrow Program? Will the SEC allow issuers to clear through an alternative book entry system, such as its own in house system? Or is DTC to be the only game in town? As the SEC can imagine, that would look very suspicious to the investing public and to the federal judiciary.
Since the SEC acknowledges that naked short selling can lead to a situation where investors claim to own more shares of an issuer than exist, thus creating maddening problems for the issuer--such as determining who is a real shareholder and who has been defrauded into purchasing a counterfeit share, e.g., for voting and dividend distribution purposes--it is not appropriate to forbid companies from taking the only steps now available since the SEC in June, 2003, allowed DTC to forbid issuers to withdraw from the DTC system to ensure the integrity of their capital structures.
I understand the SEC has a goal of increasing the speed of the clearance/settlement process, and this is an appropriate goal however, it can NOT be appropriate to ignore the current lack of integrity in the system just to increase its speed.
While the industry may clamor for more speed, it is the investor who needs protection from the market manipulation facilitated by naked short selling and prolonged settlement failures, and the investor will gladly accept a longer settlement period to ensure that he or she actually owns a real percentage ownership interest in his or her issuer. If this means that he or she must pay a little extra for a physical certificate, then that is an investment consideration for the investor. At least he or she will know that it is a real share, not a counterfeit naked short...whatever it is--perhaps an open ended stock futures contract with an unknown counterparty who may just refuse to deliver, ever?
The SEC first asked for comments on Regulation SHO some time in October, 2003. A version of the proposed rule that apparently allows market makers to continue to naked short sale when engaging in bona fide market making transactions has now been approved, but will not be in effect until January 5, 2005. If the industry can have at least 15 months to adjust their systems to meet the requirements of Regulation SHO, then surely the issuers that are subject to the market manipulation that necessitated Regulation SHO should have a reasonable period of time--at least 15 months--to take actions designed to determine the amount of damage done by said market manipulation and to try to correct it.
Of course, since in practice many DTC participants refuse to comply with the disclosure and delivery requests of the victim issuers whose securities they manipulate, even when the instructions are delivered by the NASD--how can they when doing so will expose their illegal behavior?--15 months is likely not enough time to get the necessary information.
If an issuer can not even find out who its real shareholders are, as permitted by the laws of the state in which the issuer is domiciled, what else can an issuer do? How can it avoid voter fraud via proxies in shareholder meetings? How can it properly account for the cash or shares delivered pursuant to a dividend distribution? Is the issuer liable if a real shareholder does not get to vote or receive distributions because a counterfeit shareholder got them instead? The Proposed Rule puts the issuer at the mercy of DTC and its participants. These have not proven to be trustworthy in the matters at hand.
The Proposed Rule should not be passed until the SEC is certain that naked short selling, at minimum when done for purposes of market manipulation, CAN NOT OCCUR, and when the SEC is certain that the DTC Stock Borrow Program is only used for its original stated purpose, to cover SHORT TERM settlement failures resulting from good faith delays in delivery of the transaction security. Please do not approve the Proposed Rule.
Thank you again. The SEC has the toughest regulatory assignment in the nation, and does a good job overall. These matters are difficult, and will not be resolved without the industry feeling a lot of pain--only because of the pain it has inflicted, directly and via its complicity with criminals, on the investing public. But the investing public and the integrity of the U.S. markets demand resolution, and the SEC can be the one to provide it.
H. Glenn Bagwell, Jr., Esq.
Raleigh, North Carolina
http://www.sec.gov/rules/proposed/s72404/hbagwell071204.htm
Picture ...
Professionals
Alphabetical "G"
Voila.
Here he is Stockhound ... pic 'n all
D. Roger Glenn.
http://www.ealaw.com/index.php?w=780
Back in the saddle again Janice?
http://ragingbull.lycos.com/mboard/boards.cgi?board=INOV&read=10030
Arch ... repeat the same with
SGGM
GEMM
UCAD
....
....
So what?
Senior Vice President Exploration, George Read, states: "We now have diamond results for over 10,000 tonnes of Early Joli Fou kimberlite and the average grade for this kimberlite type remains just over 16 cpht (1,617 carats from 10,022 dry tonnes). To date, this bulk sampling program has consistently produced an abundance of large stones and a high proportion of white goods. The frequency of large stones and the proportion of white goods are very significant characteristics of the Star diamond population, both of which will significantly increase the average diamond value".
http://www.stockhouse.com/news/news.asp?tick=SGF&newsid=2488583
Shore Gold Inc. - Star diamond project: 1,812 carats to date; 8.1, 6.3 and 3.1 carat diamonds in 222 carat parcel
10/19/04
Stock Symbol: SGF: TSX-VEN
SASKATOON, SK, Oct 19, 2004 (Canada NewsWire via COMTEX) --
George H. Read, P. Geo., Senior Vice President Exploration, is pleased to announce the eighth set of diamond recoveries from the Star Kimberlite. The diamond recoveries to date total 1,811.73 carats from 14,575.94 dry tonne
s processed. These results are for six kimberlite batches of a total of some 80 to 100 kimberlite batches that will be processed as part of the bulk sampling program on the Star Diamond Project, the aim of which is to recover a parcel of some 3,000 carats for valuation purposes. A total of 1,815 commercial sized diamonds (greater than 1.18 millimetre square mesh screen), collectively weighing 219.02 carats, has been recovered from the treatment of 1,446.61 dry tonnes of kimberlite. Twenty-nine diamonds greater than one carat have been recovered and the four largest stones are: 8.08, 6.28, 3.12 and 3.07 carats, respectively. In addition, 188 diamonds (3.05 carats) were recovered down to 0.85 millimetre square mesh. The colour of 76 percent of these diamonds has been classified as white, with a further 10 percent classified as off-white.
These six kimberlite batches (of a total of 43 processed) have been mined from the Southeast drive (Batches 12A, 32 and 33) and the North drive (Batches 30, 31 and 34) developed from the 235 metre shaft station. All of these kimberlite batches have been recovered from within the Early Joli Fou equivalent kimberlite. Results to date have shown that higher diamond grades are associated with the Early Joli Fou equivalent kimberlite than with the Late Joli Fou equivalent kimberlite. The relationships between these two kimberlites types are illustrated in cross sections available on the Shore Gold website: www.shoregold.com.
Batches 35A, 35B, 36, 37, 38A, 38B, 39 and 40 (all from 235 metre level) have been processed on-site and the concentrates dispatched to the sorting laboratory for final diamond recovery. Results from these batches are pending. A total of 16,492 dry tonnes has been processed through the on-site DMS plant. All batches processed to date are classified as crater facies volcaniclastic kimberlites.
Kimberlite processed and diamond results for four sample batches are listed in the table below. Grades are expressed in carats per hundred tonnes (cpht).
------------------------------------------------------------------------- Diamonds Largest Batch Location Dry Number of Total Grade Stone No. (metres below surface) Tonnes Stones (carats) (cpht) (carats) ------------------------------------------------------------------------- 12A 235 m Level: SE drive 142.94 225 26.48 18.52 3.12 ------------------------------------------------------------------------- 30 235 m Level: N drive 196.56 258 34.24 17.42 1.77 ------------------------------------------------------------------------- 31 235 m Level: N drive 240.16 333 39.69 16.53 6.28 ------------------------------------------------------------------------- 32 235 m Level: SE drive 282.21 385 34.10 12.08 2.30 ------------------------------------------------------------------------- 33 235 m Level: SE drive 291.58 402 50.85 17.44 8.08 ------------------------------------------------------------------------- 34 235 m Level: N drive 293.13 400 36.71 12.52 1.12 ------------------------------------------------------------------------- Total 1,446.61 2,003 222.07 15.35 -------------------------------------------------------------------------
The four largest stones are: 8.08 (Batch 33, Off White), 6.28 (Batch 31, Off White), 3.12 (Batch 12A, White) and 3.07 (Batch 3 1, White) carats, respectively. Ten diamonds exceed two carats and 29 diamonds exceed one carat, of which 22 are white, 4 are off-white, 2 are grey and 1 is brown. A total of 75 diamonds exceed 0.5 carat. Seventy-six percent of the total diamond parcel is classified white in colour, with a further 10 percent classified as off-white. The diamond parcel includes 2 pink, 4 yellow and 11 amber stones. Ninety-nine percent of the carat weight of this parcel occurs in diamonds greater than 1.18 millimetre square mesh.
Senior Vice President Exploration, George Read, states: "We now have diamond results for over 10,000 tonnes of Early Joli Fou kimberlite and the average grade for this kimberlite type remains just over 16 cpht (1,617 carats from 10,022 dry tonnes). To date, this bulk sampling program has consistently produced an abundance of large stones and a high proportion of white goods. The frequency of large stones and the proportion of white goods are very significant characteristics of the Star diamond population, both of which will significantly increase the average diamond value".
The diamond recovery procedure includes on site processing of kimberlite through the modular dense media separator (DMS), after which DMS concentrates are batch fed through an X-ray Flow-sort. In order to ensure the recovery of low luminosity diamonds, the Flow-sort tailings are processed over a grease table. Flow-sort and grease table concentrates are transported by a secure carrier to SGS Lakefield Research for final diamond recovery. The SGS Lakefield Research process includes drying, screening, magnetic separation, manual sorting and diamond weighing and description. SGS Lakefield Research is accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for specific tests.
Senior Vice President Exploration, George Read, Professional Geoscientist in the Provinces of Saskatchewan and British Columbia, is the Qualified Person responsible for the verification and quality assurance of analytical results.
The Star Diamond Project is designed to recover a parcel of at least 3,000 carats of diamonds to enable an accurate valuation of the stones. Up to 25,000 tonnes of kimberlite will be recovered from the shaft and drifts and processed on site to produce this diamond parcel. Shore is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of the Company trade on the TSX Venture Exchange under the trading symbol "SGF".
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release
VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=14555
For further information: please contact Kenneth E. MacNeill, President & C.E.O.; George Sanders, Vice President Corporate Development; or George H. Read, P. Geo., Vice President Exploration at (306) 664-2202 News release via Canada NewsWire, Calgary 403-269-7605
Copyright (C) 2004 CNW, All rights reserved
.... pizzzz!!
26 ounces times 400 $/ounce equals $10,400 per day.
Has this FALC article already been posted?
The National Post story
Prairie hopes rest on diamonds
But will mine pay off?
Drew Hasselback
Financial Post
Monday, October 18, 2004
FORT A LA CORNE FOREST, Sask. - On a bushy patch of prairie, believed to contain the world's largest collection of diamond-bearing rocks, two rival mining firms are pushing to unlock potential riches.
Kensington Resources Ltd. and Shore Gold Inc. are drilling targets 65 kilometres east of Prince Albert. Each is racing to prove Saskatchewan has what it takes to become a powerhouse of diamond production, perhaps even home to the world's largest diamond mine.
After more than a decade of drilling and scientific study, no one doubts the diamonds are there. The problem is whether the Saskatchewan kimberlites harbour enough diamonds to justify the massive expense of building and operating a mine.
"It's a resource of staggering proportions, some 10 billion tonnes. That's enough kimberlite to swallow all other kimberlites in existence," says Robert McCallum, a former mining engineer with DeBeers who came out of retirement five months ago to become chief executive of Kensington.
"It really is a staggering project, and it really is hard to believe that this great rock lies below these fertile lands in Saskatchewan. Some people have problems believing that, but it's true. There are diamonds in Saskatchewan, not just a few, but a tremendous resource."
Kimberlites are carrot-shaped mineral deposits that stretch deep into the earth. They're actually the remnants of extinct volcanoes. Millions of years ago, these violent mountains coughed out billions of tonnes of molten rock. As it rushed from deep within the earth, the lava scooped up diamonds. Eventually, the volcanoes fell dormant. The lava trapped inside the cone cooled. The diamonds were encased in the solidified lava, waiting eons until their discovery by modern geologists.
That's the theory. Now here's the reality. Not all kimberlites are home to diamonds, and even if they are, they don't always contain enough commercially sized gem stones to justify the construction of a mine, which can cost hundreds of millions of dollars. The only way to find out is through years of patient exploration drilling.
"It is a long process, there's no doubt about it. But we're moving it ahead as fast as we can," says Wade MacBain, spokesman for Shore Gold, a Saskatoon-based junior that is searching the province for diamonds, gold and copper.
If Saskatchewan's diamond hunt comes as a surprise, perhaps that is because other parts of Canada have already become much better known for their diamond projects. Geologists have found several diamond-rich kimberlites in Canada, most of them in the far North.
Mines have been built on two extremely valuable properties: Ekati, controlled and operated by global mining giant BHP Billiton Ltd., and Diavik, which is owned 60% by London-based Rio Tinto PLC and 40% by Toronto-based Aber Diamond Corp. Both mines are about 300 kilometres northeast of Yellowknife, far beyond the reach of convenient, modern-day infrastructure. The remote locations and the harsh Arctic climate contributed to each mine's roughly $1-billion price tag.
While Ekati and Diavik have been praised for the high value of their stones, both mines are considered to be small when compared with other global diamond projects. Canada is still looking for a high-tonnage, low-cost, long-life mine that will remain in production for decades. That's where Saskatchewan might enter the picture. Kensington and Shore are hoping the massive tonnage of the kimberlites, combined with the convenient prairie location, increases Fort a la Corne's chances.
"We're so close to civilization that you can actually order pizza and get it delivered in an hour," Mr. McCallum jokes.
Still, Fort a la Corne is something of an odd duck. The drilling has so far produced some inconclusive results. It is easy for locals to become frustrated, wondering if Saskatchewan's ship will ever come in. Many mining analysts, meanwhile, see more enticing prospects in Quebec, Ontario, the Northwest Territories and Nunavut. So, a cloud still hangs over the viability of a Saskatchewan mine.
"The project has had an up-and-down exploration history," says Jim Mustard, a Vancouver-based senior mining analyst with independent Haywood Securities Inc. who recently toured Kensington's property. "It's gone through that euphoric discovery stage, and now they're in a long, drawn-out process of trying to figure out what they really have and what its value is. It's not yet obvious."
Kensington owns 42.25% of its property, a joint venture with global diamond giant DeBeers, which owns another 42.25%. The remaining 5.5% belongs to Saskatchewan-based uranium miner Cameco Corp., which has a historical link to the property's discovery in 1989.
Kensington's main problem is that its property is just too big. Andrew Williams, project manager for DeBeers, says 47 large kimberlites have been located, covering a combined area of 2,300 hectares (5,700 acres). That's an enormous package of ground to cover, given that even the company's biggest drill rig extracts samples from a shaft that is less than a metre in diameter. That's like making a pin prick in your living room carpet.
"Although there's been a lot of drilling and exploration work done, it's spread across a large area, so the results are actually quite thin for each body," Mr. Williams explains.
Kensington has decided to focus its efforts on narrowing down the hunt to just four kimberlites. Drill rig operators are rapidly filling one-tonne bags with the bluish, grey sludge hauled from a kimberlite body buried 100 metres below the surface. Once analyzed in the lab, geologists hope to identify some high-grade zones worthy of further future study. This will be followed by even more drilling, aimed at determining the estimated number of carats buried in the rock. "We could talk about the size of the kimberlites until the cows come home, but how much of that is going to be economically exploited? That's the important thing," says Brent Jellicoe, exploration manager.
The association with DeBeers ensures that Kensington has access to the world's most powerful diamond marketer, not to mention the deep pockets that will prove useful if a decision to build a mine is eventually made.
While Ekati and Diavik have been praised for the high value of their stones, both mines are considered to be small when compared with other global diamond projects. Canada is still looking for a high-tonnage, low-cost, long-life mine that will remain in production for decades. That's where Saskatchewan might enter the picture. Kensington and Shore are hoping the massive tonnage of the kimberlites, combined with the convenient prairie location, increases Fort a la Corne's chances.
"We're so close to civilization that you can actually order pizza and get it delivered in an hour," Mr. McCallum jokes.
Still, Fort a la Corne is something of an odd duck. The drilling has so far produced some inconclusive results. It is easy for locals to become frustrated, wondering if Saskatchewan's ship will ever come in. Many mining analysts, meanwhile, see more enticing prospects in Quebec, Ontario, the Northwest Territories and Nunavut. So, a cloud still hangs over the viability of a Saskatchewan mine.
"The project has had an up-and-down exploration history," says Jim Mustard, a Vancouver-based senior mining analyst with independent Haywood Securities Inc. who recently toured Kensington's property. "It's gone through that euphoric discovery stage, and now they're in a long, drawn-out process of trying to figure out what they really have and what its value is. It's not yet obvious."
Kensington owns 42.25% of its property, a joint venture with global diamond giant DeBeers, which owns another 42.25%. The remaining 5.5% belongs to Saskatchewan-based uranium miner Cameco Corp., which has a historical link to the property's discovery in 1989.
Kensington's main problem is that its property is just too big. Andrew Williams, project manager for DeBeers, says 47 large kimberlites have been located, covering a combined area of 2,300 hectares (5,700 acres). That's an enormous package of ground to cover, given that even the company's biggest drill rig extracts samples from a shaft that is less than a metre in diameter. That's like making a pin prick in your living room carpet.
"Although there's been a lot of drilling and exploration work done, it's spread across a large area, so the results are actually quite thin for each body," Mr. Williams explains.
Kensington has decided to focus its efforts on narrowing down the hunt to just four kimberlites. Drill rig operators are rapidly filling one-tonne bags with the bluish, grey sludge hauled from a kimberlite body buried 100 metres below the surface. Once analyzed in the lab, geologists hope to identify some high-grade zones worthy of further future study. This will be followed by even more drilling, aimed at determining the estimated number of carats buried in the rock. "We could talk about the size of the kimberlites until the cows come home, but how much of that is going to be economically exploited? That's the important thing," says Brent Jellicoe, exploration manager.
The association with DeBeers ensures that Kensington has access to the world's most powerful diamond marketer, not to mention the deep pockets that will prove useful if a decision to build a mine is eventually made.
On the flip side, observers have complained that Kensington has not moved as fast as some investors might like. There are concerns DeBeers might not be committed to the project -- and not without reason. Besides its stake in Fort a la Corne, the South African miner owns 100% of both the Snap Lake project in the Northwest Territories and the Victor project in Ontario. It also owns a 51% stake in the Gahcho Kue project in the NWT. All are advanced stage projects, and there is no guarantee which project, if any, DeBeers will move into production first.
Still, Richard Molyneux, chief executive of DeBeers Canada Corp., understands that frustration. He says DeBeers wants to accelerate work in Saskatchewan. Global diamond stockpiles are shrinking, and there is an increasing appetite for new sources of rough stones, especially from a large-tonnage, low-cost, long-life mine. That means DeBeers wants to reach a decision on Fort a la Corne as soon as it can.
"A project like this takes on a new dimension of importance in terms of trying to take it forward to get it into production," Mr. Molyneux says. "We're very committed to Fort a la Corne. We're a long way before we get to a decision point, but we're going to do our level best to get to a decision point as soon as possible."
Even if DeBeers gives the project a green light, it would take at least six more years for the project to advance through the remaining stages of mine development. Future work would include completing a mining and engineering feasibility study, obtaining government permits, securing the financing, and the actual construction of a mine.
In some ways, rival Shore Gold is ahead of the exploration game. The Saskatoon-based junior has a much smaller property. It targeted 14 locations for drilling, but hit pay dirt with the first of these, which it calls the Star Kimberlite. The company is roughly halfway through a $15-million plan to sample 25,000 tonnes of rock to collect at least 3,000 carats of diamonds. Those stones will be studied to pin down an estimate on the average value of diamonds recovered from each tonne of ore on the Star property.
"Certainly everyone is watching our project. I suspect that DeBeers has a pretty good idea what the average value per carat is already with the diamonds they've seen so far. In our case, we're going to take 3,000 carats and value them, and we'll know what our diamonds are worth," Mr. MacBain says.
Even if the ongoing testing reveals that Saskatchewan is home to a treasure trove of minerals, further studies will be needed to determine whether a mine on any property makes economic sense.
For example, the target kimberlites are buried beneath 100 metres of sandy soil and gravel left behind by retreating glaciers thousands of years ago. This layer of loose material, called overburden, would have to be stripped away at enormous cost before one or several open pit mines could begin operation.
Then there is the issue of the two competing properties. It would make obvious sense for the two juniors to join forces at some point. The alternative would be the construction of two expensive processing mills beside each other. That could be a deal breaker, since the name of the game is to build the largest, yet cheapest, project possible. "We're working forward to prove up some 80 to 100 million carats to make this, in the future, if all goes well, the site of the largest diamond mine in the world," Mr. McCallum says.
Juina Mining Corp. Has Option Exercised
2004-10-18 15:23 ET - News Release
LAS VEGAS -- (Business Wire) -- Oct. 18, 2004
Juina Mining Corp. (Pink Sheets: GEMM) announced
today CMKM Diamonds Inc. (Pink Sheets: CMKX) has exercised its July
29, 2004, option to purchase common stock of the company. Through the
option, CMKX purchased 127,336,036 shares of GEMM for $500,000.
GEMM has been working with the U.S. Canadian Minerals Inc.
(OTCBB: UCAD) management team to revive its diamond mining operations
in Brazil, and the company believes that this additional funding will
assist in facilitating this process.
Further details relative to this project will be forthcoming in
future press releases and at http://www.juinamining.com/ and
http://www.uscanadian.net/.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: Statements contained in this document which are
not historical fact are forward-looking statements based upon
management's current expectations that are subject to risks and
uncertainties that could cause actual results to differ materially
from those set forth in or implied by forward-looking statements.
Contacts:
Juina Mining Corp.
Chris Hanneman, 303-220-8476
Zen - Re Divvy dates
UCAD is Aug 20 isn't it?
CMKM Diamonds, Inc. Announces Purchase/Dividend of Juina Mining Shares
October 16, 2004 03:19:00 AM ET
CMKM Diamonds, Inc. (Pink Sheets:CMKX), announced today that it has exercised its option to purchase an additional 127,336,036 shares of Juina Mining Corp. (Pink Sheets:GEMM) for $500,000 USD. The Company has elected to purchase these shares to issue as a dividend to all CMKX shareholders as of the October 29,2004 record date .The distribution date for this latest dividend is set for November 30, 2004.
Further updates will be made in press releases and on both companies' websites.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements, other than the statements of historical facts, may be deemed to contain forward-looking statements with respect to events, the occurrence of which involves risks and uncertainties, including, without limitation, demand and competition for the Company's products and services, the availability to the Company of adequate financing to support its anticipated activities, the ability of the Company to generate cash flow from operations and the ability of the Company to manage its operations.
A legend underscoring the mettle of a savant known as St. George …
… It tells the story of a prince and of a dragon. The dragon dwelt in a lake named Saskazlough near the village of Fort à la Corne, not far from the Carat River …. all in the Kingdom of Urban.
Over a very long period of time numerous towns and villages had risen up against this fierce beast, but all had gone down in painful defeat. The monster’s daily ritual was to slaughter and eat young sheep and lambs, and return the next day for more. Food was becoming so scarce for the village folk that maidens were forced to draw straws. The maiden who drew the shortest straw was dressed in kids clothing and substituted for a sheep.
Far away in the Glen of Manhattan lived Prince Roger-George of the knights of Saint Edward. Upon hearing a maiden had been stripped naked then clothed as a sheep as food for a dragon, he anointed himself and galloped to the Kingdom of Urban to do battle with the serpent. With a symphony of blows from his lance he toyed with the dragon and finally slew it, saving the maiden from a certain fete of death.
George then held forth with a magnificent sermon in the far away town of Vegas, where he celebrated with all villagers and was sanctified by the Urban King who gave him a large reward to be distributed to the poor.
Sounds like an LP with a bad scratch ..
Recent Trades - Last 10
Time Ex Price Change Volume
16:17:57 Q 0.0002 - 9,000,000
16:17:51 Q 0.0002 - 9,000,000
16:17:48 Q 0.0002 - 9,000,000
16:17:42 Q 0.0002 - 9,000,000
16:17:36 Q 0.0002 - 9,000,000
16:17:30 Q 0.0002 - 9,000,000
16:17:27 Q 0.0002 - 9,000,000
16:17:21 Q 0.0002 - 9,000,000
16:17:18 Q 0.0002 - 9,000,000
16:17:12 Q 0.0002 - 9,000,000
Hey ... good DD here!!
http://www.investorshub.com/boards/read_msg.asp?message_id=4298433
Billy ... you know who writes stuff like that don't you?
DueDillinger ... expect him here anytime now - eh Janice?
Janice, in the past when you take a break or are 'under the weather' you usually send your co-basher DueDillinger to cover for you. Are we going to see him over here? He always has a habit of showing up when StockLemon puts out a new issue of its rag - sorta like he has somethimg to do with it. Can we expect to see him around these parts anytime soon?
What's behind this "settlement" Drillbit?
16:08:06 Q 0.1315 -0.0465 485,000
After hour GEMM Trades - October 13, 2004
Who was the buyer? ... MMs ??
Time Ex Price Change Volume
16:08:06 Q 0.1315 -0.0465 485,000
16:02:54 Q 0.13 -0.048 1,000
16:01:48 Q 0.12 -0.058 15,000
16:01:33 Q 0.12 -0.058 5,000
16:01:21 Q 0.13 -0.048 24,000
16:01:21 Q 0.13 -0.048 1,000
16:01:21 Q 0.125 -0.053 8,000
16:01:15 Q 0.12 -0.058 30,000
16:00:51 Q 0.12 -0.058 5,000
16:00:21 Q 0.124 -0.054 5,000
http://new.stockwatch.com/swnet/utilit/utilit_snapsh_result.aspx
You're coming through loud and clean Zen.
Hanging out for the squeeeeeze ....
Is anyone having trouble with a RTQ feed delay on GEMM ??
Kensington/De Beers optimistic
At a tour of the Kensington/De Beers Diamond Project in the Fort a la Corne area recently, project executives stated nothing but optimism for further exploration of diamonds in the region.
By Colin McGarrigle of the Journal
Melfort Journal — At a tour of the Kensington/De Beers Diamond Project in the Fort a la Corne area recently, project executives stated nothing but optimism for further exploration of diamonds in the region.
The 2004-05 evaluation and exploration program has been given a $7.62 million budget, representing the largest and most aggressive exploration program to date for the project.
"We have found diamonds and we know that there's many more," stated Richard Moleneux, president and CEO of De Beers Canada.
Current exploration has shown a significant deposit of kimberlite in the region, and tests have indicated that the grade of diamonds found range from seven to 16 carets per hundred tonnes.
"This is a new era for Kensington. If everything goes as well as we hope, this could be the largest, low-cost, long-life diamond site in the world," explained Robert McCallum, president of Kensington Resources.
"Kensington shares will definitely be a lot higher than they are today," McCallum stated with optimism.
With the large exploration budget, the goal now is to establish a Task Force to identify new goals and review the strategy for advancement at the diamond project.
Moleneux added that the demand for diamonds had slipped in previous years, but that there seems to be a resurgance in the markets recently.
"It is a hugely complicated process to sell diamonds, but the demand for diamonds is now growing ahead of supply," stated Moleneux.
"And a project like this takes on a new importance for diamonds," he added.
While the group is still in the exploration stage, McCallum stated that they are looking at ways to accelerate the project as quickly as possible.
A feasibility study will be carried out within three to four years, according to McCallum, and if the study gives the go-ahead, he stated that the project could have three to four large open-pit mines within a few years.
Even though it could be several years before any actual mining takes place, McCallum and Moleneux were stating that they would be seeking ways to maximize the local work force in any way possible.
http://www.melfortjournal.com/story.php?id=121486
A symphony of pain ..
http://www.stockscores.com/quickreport.asp?ticker=ucad
... MMs cannibalizing MMs.
Who can one believe anymore??
Posted by: james55702
In reply to: None Date:10/11/2004 11:47:01 PM
Post #of 105276
CONFIRMED: WMC Dividend Letter is a Mistake
From bubbles, who is a reliable poster on proboards32:
Sorry to start another thread about this but I wanted to make sure that people read it. I just got off the phone with Narida Mossop, Investor Relations Officer for WMC Resources in Southbank, VIC, Australia. 11:15 pm est. She had just returned from lunch. (1:15 pm tomorrow there). Narida said that she had received several dozen emails about the TD Waterhouse letter today and that she has heard nothing about any such dividend and that, as far as she knows, there is no relationship between WMC Resources and CMKM at all. Narida has a call into TD Waterhouse but has not heard from them yet. Her best guess is that it was just a mistake on a form letter.
Sorry. I was really hoping it was true.
bubbles
http://www.investorshub.com/boards/read_msg.asp?message_id=4263578
The Zenman ...
Posted by: zeninvestor32
In reply to: None Date:10/11/2004 11:21:12 PM
Post #of 17122
WMC-CMKX LINKS INSIDE
Hey folks, if we're going to use circumstantial evidence to speculate, let's at least make it GOOD. LOL Ok, here ya go. Special thanks to Gosh_50 at RB for noting Silic's involvement.
First things first. A CMKX PR in 2003 noting Jovan Silic as the project geophysicist for CMKX's FALC property, specifically with respect to the electromagnetic airborn surveying.
http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_April_21/ai_100402143
Now, take a look at the profile in the link below for Hugh Rutter, noting specifically that he works for Flagstaff GeoConsultants. Note this section: "The geophysicist with Western Mining Corporation who sited RD1, at Olympic Dam, the discovery hole for the enormous copper/gold/uranium ore body. " Also note his experience in his profile link: "His research includes the development of interpretation techniques for Transient Electromagnetic data and, while Research Manager with the CSIRO, sub-surface radar and acoustic transmission methods."
http://www.flagstaff-geoconsultants.com.au/people.htm
Now scroll down on the link above. One of his 5 partners at Flagstaff GeoConsultants is Jovan Silic, CMKX's geophysicist on the FALC property.
You want a WMC connection? You got it.
Oh want more?
Go to:
http://www.crcamet.mq.edu.au/AnnualReports/AnnualReport1999_00/
Click on the pdf titled Education_9900.pdf
Scroll down the PDF to the PhD Candidate in 2000 Jovan Silic. Please note his PhD research project: Interpretation of TDEM Data.
Interesting, no? All just speculation for now. Thought I'd throw a little gas on the fire though. Especially when our project geophysicist for FALC is from Australia and has the connections to WMC through the consulting group he works for.
Z
As always, these are my personal opinions.
Hopefully nobody in here is investing anything but "fun" money that they can afford to gamble with.
Is this the WMC on TSX Venture, or is there some other WMC?
http://investdb.theglobeandmail.com/invest/investSQL/gx.stock_today?pi_symbol=WMC-X
Looks like a repeat of the stunt they pulled with Martha Stewart ... going after the lesser problem in the hope it will satisfy the masses and detract from the multi-billion $ naked shorting scandal.
The mission of the U.S. Securities and Exchange Commission is to protect investors and maintain the integrity of all securities markets.
This is an update ... Stay tuned
October 8, 2004. (FinancialWire)
FinancialWire has independently confirmed that the “Dateline NBC” feature from the General Electric (NYSE: GE) unit is still being produced, and may wrap up in time for a bombastic debut before the elections three weeks from now.
TheFaulkingTruth.com, an online publication, had reported the development yesterday, and reported yet another lawsuit by the O’Quinn legal combine, this one naming E*Trade (NYSE: ET), Goldman Sachs (NYSE: GS) and Bear Stearns (NYSE: BSC), among others as defendants.
There had been speculation, now shown to be unfounded, that when O’Quinn’s suit on behalf of Jag Media Holdings (OTCBB: JGMHA; OTC: JAGH) was dismissed due to filing deficiencies, it might have cooled Dateline’s interest.
The reportage is said to focus on allegations that “brokers, through their wholly owned clearing house system, the Depository Trust Corporation (DTCC), have effectively been creating counterfeit shares of stock through their ‘Stock Borrow Program’, which allows brokers to ‘borrow’ the same shares over and over again, artificially inflating the share count and driving the price of the stock down. They also claim that the governing body that has been entrusted with the task of protecting the individual investors, the self-proclaimed ‘Investor's Advocate’, the SEC, has failed to protect investors, and has succumbed to pressure from the brokers who profit from the naked short selling scandal, said Faulk.
“We have also confirmed that several states have opened investigations into the naked short selling scandal, including Nevada , Washington, California, Florida, and Louisiana. In fact, Louisiana has filed a criminal subpoena against Paine Webber for failure to deliver shares of Nutek, a Las Vegas, Nevada holding company. According to our sources, several other states are considering similar investigations,” said Faulk.
The campaign against illegal and manipulative naked short selling suffered a major blow recently as a U.S. District Judge dismissed Jag Media Holdings’ (OTC: JAGH) suit upon a motion by some 75 defendants, including A.G. Edwards (NYSE: AGE) and Citigroup’s (NYSE: C) Citibank.
It left leaders of the campaign disillusioned at the quality of legal work being performed by the vaunted law firms Christian, Smith, Wukoson and Jewell, and OQuinn, Laminack and Pirtle, whose notches already include environmental targets, the breast implant industry and the tobacco industry.
Stockgate, a growing global malady, is being contested on multiple levels, including judicial, legislative and political.
Delegates to the September 20 annual SEC Forum on Small Business passed several resolutions on the issue to be submitted to the SEC. Among them were:
1. Extend Reg. SHO to apply to all publicly traded companies including non-reporting companies.
2. Recommend that the SEC Commissioners reinstate the proposed provision in Regulation SHO that prohibited a selling shareholder from withdrawing his/her profits from the trade until after delivery of the underlying sold shares.
3. SEC should require all SROs, and any clearinghouse for an SRO that receives securities into accounts for security holders to disclose the fact of the ability to loan the securities in the accounts and allow security holders to opt out of allowing the securities to be loaned.
Robert Shapiro, chair of Sonecon LLC, an economic advisory firm and former Under Secretary of Commerce from 1998 to 2001 and principal economic advisor to President William Clinton in his 1992 campaign, has expressed “serious concerns about the impact of the final version of Regulation SHO regarding short sales on the equity and transparency of our equity markets.”
Shapiro holds a Ph.D. from Harvard University and has been a Fellow of the National Bureau of Economic Research, the Brookings Institution, and Harvard University.
Shapiro said the SEC is correct to broaden the terms of regulation of short sales, and applauded the section directing broker dealers to mark all equity orders as “long,” “short” or “short exempt.” More important, he said, the new “locate and delivery” requirements could substantially reduce stock manipulation carried out through naked short sales -- but only if those requirements are widely applied and strictly enforced.
“Unfortunately, Regulation SHO does not meet either of these two standards. The troubling result is that the Regulation, in effect, establishes an official level of tolerance for unsettled or naked short sales,” Shapiro charged.
Shapiro said he strongly concurs with the comments of the North American Securities Administrators Association (NASAA) on the draft rule, which said NASAA was “unable to determine why the Commission proposes to permit significant settlement failures at all. While there are instances when settlement may be legitimately delayed, existing regulations provide for extensions for settlement. If the Commission continues to allow settlement failures, it may well facilitate the harm that the proposal is designed to remedy.”
“Until Regulation SHO, this economic counterfeiting has been facilitated by electronic record keeping and the apparent practice of the DTCC and its subsidiary National Securities Clearing Corporation (NSCC) of often disregarding persistent unsettled short positions. With Regulation SHO, the SEC has provided its implicit imprimatur for the same practice in cases covering the vast majority of public companies and billions of dollars.”
Shapiro urged the SEC to “reconsider the provisions of Regulations SHO and, at a minimum, apply the ‘locate and delivery’ requirements for threshold securities to all short sale transactions, and adopt a zero-tolerance policy for significant settlement failures. American investors should feel confident that the SEC will ensure the integrity of every equity transaction they undertake and fully protect their right to receive what they have paid for.”
While the battle is still waged in the U.S., some of the threats to small investors’ investments are being exacted overseas. Despite some 250 companies winning their exit pass, the FaulkingTruth.com website reported that dozens of companies are still being refused delistings from the Berlin-Bremin Exchange, including ImageWare Systems (AMEX: IW) and Action Products International (NASDAQ: APII). FinancialWire also reported that Sontra Medical Corp. (NASDAQ: SONT) is among those whose shares Berlin has resisted delisting.
In all, Faulk said Berliner Freiverkehr CEO Holger Timm reported he has been asked by 386 firms to cease their trading. He is said to have balked at the term delisting, noting that “Trading foreign shares on the third-tier market segment at the Berlin or any other German exchange is not being regarded as a 'listing', therefore it is incorrect to use the term 'delisting' if a company wants to cease trading."
FaulkingTruth said others refused delistings include Endevco Inc. (OTCBB: ENDE), Limelight Media Group (OTCBB: LMMG), IpVoice Communications (OTCBB: IPVO), now NewMarket Technology Inc, (OTCBB: NMKT), Force Protection (OTCBB: FRCP), Cyber Digital Inc. (OTCBB: CYBD), and XRAYMEDIA (OTCBB:XRYM). Others mentioned yesterday included Military Communications Technology (OTCBB: MLTA), Dalrada Financial Corp. (OTCBB: DRDF), and Mannatech Inc. (NASDAQ: MTEX).
Timm sent a letter to companies asking to be delisted, which promised if “after considering the above aspects, should you still prefer your stocks not to be traded in Germany we will respect your wish and apply for delisting on the Berlin stock exchange.”
However, for dozens of companies, that appears to have been an empty offer.
In a comment letter to the U.S. Securities and Exchange Commission, Larry Thompson, Managing Director and Senior Deputy General Counsel for the DTCC, said it is a violation of Section 17A of the Securities Act of 1934 to impose any process or restriction that would cause delays in the settlement process, said the online newsletter, published by http://www.investigatethesec.com..
“Although not the intent of the comment letter, Mr. Thomson has just become part of a growing number of people who contend that the most recent short selling reform package out of the SEC, Regulation SHO, may not be in compliance with federal law.
“The letter submitted to the SEC on August 16, 2004 was addressing the SEC’s proposal to restrict all transfer agents from clearing trades on those issuers who created a ‘Custody Only”’ restriction on the trading of their securities,” noted the newsletter.
“His legal points, presumably unintended, actually shot squarely across the bow of the SEC’s Regulation SHO,” said StockGate Today, pointing to http://www.sec.gov/rules/proposed/s72404/s72404-14.pdf
“Thompson concludes his opinion letter to the SEC by surmising that the SEC should proceed on with this proposal as written because issuers are not authorized to put restrictions on their stock. For transfer agents to clear these stocks would be aiding and abetting unlawful conduct. The point of law being the settlement requirements defined in Section 17A of the Securities Act of 1934.
“Thus, asked the newsletter, with Thompson “claiming that a delay in the settlement of trades is unlawful how can Regulation SHO be grounded by the presumption that trade settlements are not a mandatory part of the Markets?
“The SEC, in Regulation SHO claims that 4% of all publicly traded companies have levels of settlement failures that exceed an abusive threshold. They also admit that in some cases the failures exceed the entire public float of companies. These are market conditions not only create delays and inefficiencies but fraud and manipulation as well. The SEC’s final package never addressed forced settlements and forced timelines on the failures but instead simply threatened ‘future enforcement’ possibilities and placed “restrictions’ above abusive levels.
The final Regulation SHO rules are at http://www.sec.gov/rules/final/34-50103.htm.. The trade reporting requirements are at http://www.nasdr.com/2610_2004.asp#04-54..
Recently it was reported that regulated companies, such as dealers, brokers, mutual fund companies, financing firms, and investment houses, have been told they have to submit revised operating manuals to incorporate changes in the Anti-Money-Laundering Act of 2001 by Oct. 29.
The key is a requirement that regulated firms “must know their customers” to prevent money-laundering practices. The firms have to have a procedure to get satisfactory proof of the customer's identity and ensure that effective procedures for verifying the identity of new customers are in place.
However, FinancialWire interviews with spokespersons at the SEC has determined that individuals may open nominee offshore firms without providing their identities to anyone, and by using a multiple number of such nominee firms can even gain complete control of a public company while never revealing their true identities.
The SEC told FinancialWire that it has no power to require identification of individuals behind such firms.
Columnist Jack Anderson has stated that millions if not billions of dollars are laundered through naked short selling schemes.
Twenty civil cases have now been filed by O'Quinn, Laminack & Pirtle, Christian Smith & Jewell, and Heard, Robins, Cloud, Lubel & Greenwood, LLP, all of Houston, Texas. The consortium of law firms, famed for the giant awards they obtained suing tobacco companies. The group recently brought suit against the Depository Trust and Clearing Corp. for allegedly participating in the short-selling conspiracy through its “stock borrow” program which the attorneys say is nothing more than an illegal electronic printing press for stock certificates.
Lead counsel John O'Quinn said: "We are committed to the relentless pursuit of justice.”
All this has led to some major changes on Wall Street, if not regulatory attentiveness.
Recently observers were surprised to find a comment letter submitted to the SEC by Mike Alexander, Senior VP of Charles Schwab, that admits outright that brokerages regularly ignore rules and regulations, saying it is not rules that need to be written; it is changes in behavior that is needed.
“Schwab opposes the notion that securities intermediaries such as broker-dealers be required to police compliance,” he stated. “The NYSE and other SROs have had trade affirmation rules on their books for some time. However, such rules have not been effective in changing the behavior of Buy-Side firms or their custodians; nor do the rules provide assurance that the affirmed trade will settle.
“Recognition of this fact is evidence that changes to the settlement cycle not only require overhauling systems, but also changing behavior. We believe that only by holding all market
participants directly accountable for making required affirmations will the necessary changes to behavior,” he stated at http://www.sec.gov/rules/concept/s71304/charlesschwab061604.pdf .
“The SEC claims that the number of companies involved in this ‘threshold security’ category is 4% of all publicly traded companies. If in fact it is that small the process is certainly manageable,” said the website InvestigatetheSEC.com at http://www.investigatethesec.com . “It is also the right of every issuer, in protecting their business and their investors to know the status of their stock trading.”
Some were discussing whether the SEC can keep such information private under the Freedom of Information Act.
The marketplace is already upset over promises by the Berlin Stock Exchange, since broken, that it would delist any company upon request.
“Please understand that cessation of trading in the shares of XRAYMEDIA Inc. (OTCBB: XRYM) is not possible,” the exchange told one such requester.
It’s not just U.S. companies such as Whistler Investments (OTCBB: WHIS), Sonoran Energy (OTCBB: SNRN), Celsion Corporation (AMEX: CLN), and eLinear Inc. (AMEX: ELU) or Israeli companies that have had serious concerns about their unannounced and unathrorized listings on the Berlin-Bremen Stock Exchange.
According to court filings supported by the O’Quinn/Christian legal network, almost $1 billion annually is received by the Depository Trust and Clearing Corp. for its “Stock Borrow Program,” which the lawsuits claim is just a fancy name for counterfeiting, as the DTCC purportedly lends out many multiples of the actual certificates in the float. Apparently the SEC receives a transaction fee for each transaction facilitated by these loans of non-existent certificates, which could knock a hole in its budget should the revenues from the practice be halted.
The North American Securities Administrators Association, comprised of state and Canadian regulators, has pointedly told the SEC that either it must rethink its cozy DTCC relationship, or it hints, some of its more aggressive state practitioners (think Eliot Spitzer) may do the rethinking for the SEC.
Naked short selling is worrisome for hundreds of small U.S. companies, including those recently asking to be delisted from the Berlin Stock Exchange, such as Golden Phoenix Minerals, Inc. (OTCBB: GPXM), Nannaco, Inc. (OTCBB: NNCO), 5G Wireless Communications, Inc. (OTCBB: FGWC), CyberAds, Inc. (OTCBB :CYAD), Provectus Pharmaceuticals, Inc. (OTCBB: PVCT), House of Brussels Chocolates (OTCBB: HBSL), InforMedix, Inc. (OTCBB: IFMX), Tissera, Inc. (OTCBB: TSSR), Americana Publishing, Inc. (OTCBB: APBH), Celsion Corporation (AMEX: CLN), ChampionLyte Holdings, Inc. (OTCBB: CPLY), Pickups Plus, Inc. (OTCBB:PUPS), China Wireless Communications Inc. (OTC BB: CWLC), CareDecision Corp. (OTCBB: CDED), Titan General Holdings, Inc. (OTCBB: TTGH), IPVoice Communications, Inc. (OTCBB: IPVO), Whistler Investments (OTCBB: WHIS), WARP Technology Holdings, Inc. (OTCBB: WRPT), BGR Corp. (OTCBB: BGRR), ICOA, Inc., (OTCBB: ICOA), DICUT, INC. (OTCBB: DCUTE), NHC Communications Inc. (TSX: NHC; OTCBB: NHCMF), Stratus Services Group, Inc. (OTCBB: SERV), Golden Phoenix Minerals, Inc. (OTCBB: GPXM).
Small public companies are squeezed not only by hedge funds, naked short sellers, overseas listers such as the Berlin Stock Exchange, and the out-of-control “Stock Borrow Program” run by the governance-conflict-laden Depository Trust and Clearing Corporation, but to the amazement of the industry, as often and not by their own regulators.
A new staff recommendation by Annette Nazareth, director of the division of market regulation at the U.S. Securities and Exchange Commission to “outlaw” ownership of paper certificates at the same time the Depository Trust and Clearing Corporation is under intense scrutiny for alleged electronic counterfeiting has begun hitting the small public company markets, company executives, shareholders and manipulative short-selling opponents like the proverbial ton of bricks.
A Dow Jones (NYSE: DJ) article by Judith Burns sparked the uproar, as the inextricably intertwined web of connections between the SEC and the DTC, which is sagging from the weight of conflicted governance by representatives from a rollcall of industry heavyweights, including NASD, which owns NASDAQ (OTCBB: NDAQ), the New York Stock Exchange, Goldman Sachs (NYSE: GS) and Lehman Brothers (NYSE: LEH), to name only a few.
The Dow Jones report noted that “naked short-selling occurs when sellers don't buy shares to replace those they borrowed, a manipulative practice that can drive a company's stock price sharply lower.
The recent lawsuit filed by Nanopierce Technologies (OTCBB: NPCT) alleges that the Depository Trust and Clearing Corp. has a lot of reasons, almost one billion of them a year, to keep illegal naked short selling in operation. It was the shot across the bow by the legendary Houston law firms of Christian, Smith, Wukoson and Jewell, and OQuinn, Laminack and Pirtle, whose notches already include environmental targets, the breast implant industry and the tobacco industry, all brought to their knees.
In comments to the U.S. Securities and Exchange Commission, C. Austin Burrell, who is providing litigation support and research for the law firms, said that StockGate is more massive than anyone may have imagined. “Illegal Naked Short Selling has stripped hundreds of billions, if not TRILLIONS, of dollars from American investors,” and have resulted in over 7,000 public companies having been “shorted out of existence over the past six years.” Burrell said some experts believe as much as $1 trillion to $3 trillion has been lost to this practice.
He stated that the restrictions on short selling were deliberately put into the Securities Acts of 1933 and 1934 because of the first-hand evidence then available that the “sheer scale of the crashes was a direct result of intentional manipulation of US markets through abusive short selling by a massive conspiracy.”
Burrell noted that the 65-lawyer team presided over by lead lawyers Wes Christian and John O’Quinn has uncovered more than 1,200 hedge fund and offshore accounts working through more than 150 broker-dealers and market makers in a joint cooperative effort to strip small and medium size public companies of their value.
According to lawyer Christian, et.al., the DTC is at the very heart of the problem, and has almost a billion dollars a year at stake in keeping the problem.
The Depository Trust Company (DTC) is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the SEC. The depository supposedly brings efficiency to the securities industry by retaining custody of some 2 million securities issues, effectively "dematerializing" most of them so that they exist only as electronic files rather than as countless pieces of paper. The depository also provides the services necessary for the maintenance of the securities it has in “custody.”
According to the suit, the DTCC has an enormous pecuniary and conflicted interest in the entire short selling scandal through the huge income stream they were realizing from it every day. They have made literally billions of dollars lending individual real shares, in most cases over and over, getting a fee each time they made a journal entry in the “Stock Borrow Program.”
The Stock Borrow Program was purportedly set up to facilitate expedited clearance of stock trades. Somewhere along the line, the DTCC became aware that if it could lend a single share an unlimited number of times, it could collect a fee each time, according to Burrell. “There are numerous cases of a single share being lent ten or many more times,” giving rise to the complaint that the DTCC has been electronically counterfeiting just as was done via printed certificates before the Crash.
“Such re-hypothecation has in effect made the potential ‘float’ in a single company's shares virtually unlimited and the term ‘float’ meaningless. Shares could be electronically created/counterfeited/kited without a registration statement being filed, and without the underlying company having any knowledge such shares are being sold or even in existence.” Burrell said the Christian/O’Quinn lawsuits will seek to show that the “counterfeiting/creation of unregistered shares is a specific violation of the Securities Act of 1933, barring the ‘Sale of Unregistered Securities’.”
One lawsuit alleges that the DTC has a colossal disincentive to stop the “stock borrow” program, booking revenues from services of $425,416,000 and similarly, the NSCC deriving revenues of $293,133,000.
Further, the suit alleges that “open positions” resulting from this activity at the close of business on December 31, 2003, “approximated $3,025,467,000” due to NSCC, and $2,303,717,000 due by NSCC, and unsettled positions of $721,750,000 for securities borrowed through the NSCC’s “Stock Borrow Program.”
Nanopierce claims that DTCC and NSCC have joined in a “scheme” to “manipulate downward the price of the affected securities, thereby reducing the market value of the open fail to deliver positions.” The suit also claims that the s have permitted sellers to maintain open fail to deliver positions of tens of millions of shares for periods of a year and even longer.
It quotes the National Association of Security Dealers as admitting that “concerns have been raised by members, issuers, investors and other interested parties about potentially abusive short selling activities occurring in the marketplace. In particular, naked short selling, or selling short without borrowing securities to make delivery, can result in long term failures to deliver, including aggregate failures to deliver that exceed the total float of a security. NASD believes such extended failures to deliver can have a negative effect on the market. Among other things, by not having to deliver securities, naked short sellers can take on larger short positions than would otherwise be permissible, which can facilitate manipulative activity.”
The largely unregulated DTC has become something of a defacto Czar presiding over the entire U.S. markets system, wielding more day-to-day influence and control than the SEC, the NASD and NASDAQ combined.
The Depository Trust and Clearing Corp.’s two preferred shareholders are the New York Stock Exchange and the NASD, a regulatory agency that also owns the NASDAQ (OTCBB: NDAQ) and the embattled American Stock Exchange! Regulators, regulate thyself?
In an era when corporate governance is the primary interest for the SEC and state regulators, the DTCC is hardly a role model. Its 21 directors represent a virtual litany of conflict:
They include Bradley Abelow, Managing Director, Goldman Sachs (NYSE: GS); Jonathan E. Beyman, Chief Information Officer, Lehman Brothers (NYSE: LEH); Frank J. Bisignano, Chief Administrative Officer and Senior Executive Vice President, Citigroup / Solomon Smith Barney's Corporate Investment Bank (NYSE: C); Michael C. Bodson, Managing Director, Morgan Stanley (NYSE: MWD); Gary Bullock, Global Head of Logistics, Infrastructure, UBS Investment Bank (NYSE: UBS); Stephen P. Casper, Managing Director and Chief Operating Officer, Fischer Francis Trees & Watts, Inc.; Jill M. Considine,Chairman, President & Chief Executive Officer, The Depository Trust & Clearing Corporation (DTCC);
Also, Paul F. Costello, President, Business Services Group, Wachovia Securities (NYSE: WB); John W. Cummings, Senior Vice President & Head of Global Technology & Services, Merrill Lynch & Co. (NYSE: MER); Donald F. Donahue, Chief Operating Officer, The Depository Trust & Clearing Corporation (DTCC); Norman Eaker, General Partner, Edward Jones; George Hrabovsky, President, Alliance Global Investors Service; Catherine R. Kinney, President and Co-Chief Operating Officer, New York Stock Exchange; Thomas J. McCrossan, Executive Vice President, State Street Corporation (NYSE: STT); Eileen K. Murray, Managing Director, Credit Suisse First Boston (NYSE: CSR); James P. Palermo, Vice Chairman, Mellon Financial Corporation (NYSE: MEL); Thomas J. Perna, Senior Executive Vice President, Financial Companies Services Sector of The Bank of New York (NYSE: BNY); Ronald Purpora, Chief Executive Officer, Garban LLC; Douglas Shulman, President, Regulatory Services and Operations, NASD; and Thompson M. Swayne, Executive Vice President, JPMorgan Chase (NYSE: JPM).
In their comments to the SEC regarding Regulation SHO in January, the 50 state regulators, through their association, the North American Association of Securities Administrators (NASAA) issued what many consider to be a strong warning that if the DTC is not dealt with in the final regulations, state regulators such as New York State Attorney General Eliot Spitzer may step to the plate.
In what many considered to have been explosive comments, Ralph Lambiase, NASAA president and Director of the Connecticut Division of Securities, warned "NASAA urges the Commission to reconsider its stance regarding the role of the Depository Trust and Clearing Corporation (the DTC). As a threshold matter, NASAA believes that the Commission should explicitly prohibit the DTC from lending more shares of a security than it actually holds. The ability of the overall proposed rule would be severely impared unless the Commission undertakes to implement such a prohibition.”
Recently, leading market makers and brokers named in various lawsuits and other actions, including FleetBoston (NYSE: FBF), Goldman, Sachs & Co. (NYSE: GS), H. Myerson & Co., Inc. (NASDAQ: MHMY), Olde / H&R Block (NYSE: HRB), Charles Schwab (NYSE: SCH), Toronto-Dominion’s (NYSE: TD), TD Waterhouse Group, Bank of America's (NYSE: BAC) Banc of America Securities LLC, Societe Generale's (OTC: SCGLF) SG Cowen Securities Corp. vFinance, Inc. (OTCBB: VFIN), Knight Trading Group, Inc. (NASDAQ: NITE), A.G. Edwards, Inc. (NYSE: AGE), Ameritrade Holding Corp. (NASDAQ: AMTD), Deutsche Bank AG (NYSE: DB), and ETrade Group, Inc. (NYSE: ET), were forced to comply with new short-selling market regulations imposed by the NASD after the SEC had “sat on” the NASD request to plug material loopholes for almost 2-1/2 years.
“The new rules expand the scope of the affirmative determination requirements to include orders received from broker/dealers that are not members of NASD ("non-member broker/dealers").
The new rule is on the web at http://www.nasdr.com/2610_2004.asp#04-03
Some 122 companies, including 13 brokers, such as FleetBoston (NYSE: FBF), Goldman, Sachs & Co. (NYSE: GS), H. Myerson & Co., Inc. (NASDAQ: MHMY), Olde / H&R Block (NYSE: HRB), Charles Schwab (NYSE: SCH), Toronto-Dominion’s (NYSE: TD), TD Waterhouse Group and vFinance, Inc. (OTCBB: VFIN). A.G. Edwards, Inc. (NYSE: AGE), Ameritrade Holding Corp. (NASDAQ: AMTD), Deutsche Bank AG (NYSE: DB), Knight (NASDAQ: NITE) and ETrade Group, Inc. (NYSE: ET), have been embroiled for over a year in a raging controversy.
The remaining 109 companies among the 122 named to date have issued press releases or been named in the media as having been victimized, or as taking various actions, either alone or in concert with other companies, to oppose manipulative trading in the form of illegal naked short selling. The actions have ranged from lawsuits to withdrawals and threatened withdrawals from the electronic trading system managed by the Depository Trust & Clearing Corp., to withdrawals from toxic financings, to the issuance of dividends or name changes designed to squeeze manipulators, to joining associations or networks or to contacting regulatory authorities to provide documentation of abuses or otherwise complain.
The complete list of those 108 companies include Advanced Viral Research Corp. (OTCBB: ADVR), AdZone Research, Inc. (OTCBB: ADZR), Amazon Natural Treasures (OTC: ANTD), America's Senior Financial Services (OTCBB: AMSE), American Ammunition, Inc. (OTCBB: AAMI), AngelCiti Entertainment (OTCBB: AGLC), ATSI Communications, Inc. (OTC: ATSC), Federal Agricultural Mortgage / Farmer Mac (NYSE: AGM) Allied Capital (NYSE: ALD), American Motorcycle (OTC: AMCYV), American International Industries (OTCBB: AMIN), Ameri-Dream (OTC: AMDR), Adirondack Pure Springs Mt. Water Co. (OTCBB: APSW), ATSI Communications,Inc. (OTC: ATSC) Bluebook International (OTCBB: BBIC), Blue Industries (OTCBB: BLIIV), Bentley Communications (OTCBB: BTLY), BIFS Technologies Corporation (OTCBB: BIFT), Biocurex (OTCBB: BOCX). Broadleaf Capital Partners, Inc. (OTCBB: BDLF), Chattem, Inc. (NASDAQ: CHTT), Critical Home Care (OTCBB: CCLH), Composite Holdings (OTC: COHIA), CyberDigital, Inc. (OTCBB: CYBD). Diamond International Group (OTCBB: DMND), Dobson Communications Corp. (NASDAQ: DCEL), Eagle Tech Communications (OTC: EATC), Edgetech Services (OTCBB: EDGH);
Also, Endovasc Ltd. (OTCBB: EVSC), Enviro-Energy Corporation (OTCBB: ENGY), Environmental Products & Technologies (OTC: EPTC), Environmental Solutions Worldwide, Inc. (OTCBB: ESWW), EPIXTAR Corp. (OTCBB: EPXR), eResearchTechnologies, Inc. (NASDAQ: ERES), Flight Safety Technologies (OTCBB: FLST), Freddie Mac (NYSE: FRE), FreeStar Technologies (OTCBB: F SRCE), Front Porch Digital, Inc. (OTCBB: FPDI), Geotec Thermal Generators, Inc. (OTCBB: GETC), Genesis Intermedia (OTC: GENI), GeneMax Corp. (OTCBB: GMXX), Global Explorations Inc (OTC: GXXL), Global Path (OTCBB: GBPI), GloTech Industries, Inc. (OTCBB: GTHI), Green Dolphin Systems (OTCBB: GLDS), Group Management (OTCBB: GPMT), Hop-On (OTC: HPON), H-Quotient, Inc., (OTCBB: HQNT), Hyperdynamics Corp. (OTCBB: HYPD), International Biochem (OTCBB: IBCL), Intergold Corp. (OTCBB: IGCO), International Broadcasting Corporation (OTCBB: IBCS), InternetStudios, Inc. (OTCBB: ISTO), ITIS Holdings (OTCBB: ITHH), Investco Corp. (OTCBB: IVCO), Lair Holdings (OTC: LAIR), Lifeline BioTechnologies Inc. (OTC: LBTT), Life Energy & Technology (OTCBB: LETH), MBIA (NYSE: MBI);
Also, MegaMania Interactive (OTC: MNIA), MetaSource Group, Inc. (OTCBB: MTSR),Midastrade.com (OTC: MIDS), Make Your Move (OTCBB: MKMV), Medinah Minerals (OTC: MDMN), MSM Jewelry Corp. (OTC: MSMC), Nanopierce Technologies, Inc. (OTCBB: NPCT), Nutra Pharmaceutical (OTCBB: NPHC), Nutek (OTCBB: NUTK), Navigator Ventures (OTC: NVGV), Orbit E-Commerce, Inc. (OTCBB: OECI), Pitts & Spitts (OTC: PSPP), Sales OnLine Direct (OTCBB: PAID), Pacel Corp. (OTCBB: PACC), PayStar Corporation (OTC: PYST),Petrogen Corp. (OTCBB: PTGC), Pinnacle Business Management (OTC: PCBM), Premier Development & Investment, Inc. (OTCBB: PDVN), PrimeHoldings.com, Inc. (OTC: PRIM), Phlo Corporation (OTCBB: PHLC), Resourcing Solutions (OTC: RESG), Reed Holdings (OTC: RDHC), Rocky Mountain Energy Corp. (OTCBB: RMECE), RTIN Holdings (OTCBB: RTNHE), Saflink Corp. (NASDAQ: SFLK), Safe Travel Care (OTCBB: SFTVV), Sedona Corp. (OTCBB: SDNA);
Also, Sionix Corp. (OTCBB: SINX), Sonoran Energy (OTCBB: SNRN), Starmax Technologies (OTC: SMXIF), Storage Suites America (OTC: SSUA), Suncomm Technologies (OTC: STEH), Sports Resorts International (NASDAQ: SPRI), Technology Logistics (OTC: TLOS), Swiss Medica, Inc. (OTCBB: SWME), Ten Stix, Inc. (OTCBB: TNTI), Tidelands Oil (OTCBB: TIDE), Titan Construction (OTC: TTCS), Trezac Corp. (OTCBB: TRZAV), Universal Express, Inc. (OTCBB: USXP), Valesc Holdings, Inc. (OTCBB: VLSHV), Vega Atlantic (OTCBB: VGAC), Viragen (AMEX: VRA), Viragen International (OTCBB: VGNI), Vista Continental Corporation, (OTCBB: VICC), Viva International (OTCBB: VIVI), Vtex Energy (OTCBB: VXENE) and Wizzard Software (OTCBB: WIZD), WorldTradeShow.com (OTC: WTSW) and Y3K Secure Enterprise Software, Inc. (OTCBB: YTHK).
Earlier in 2003, the SEC fined Rhino Advisors, Inc., $1 million for its representation of Amro International in the financing and manipulation of Sedona Corp. Amro, also known as AMRO, was registered in Panama, a secretive offshore haven, but was not named in the SEC settlement. Another 60 public companies may have been manipulated by the fined Rhino Advisors and its indicted principals, or its funding apparatus, Amro.
These include:
All American Food Group Inc (OTC: AAFGQ), Amanda Co Inc (OTC: AMNA), Antra Holdings (OTC: RECD), Aquis Communications Group Inc (OTCBB: AQUIS), Avanir Pharmaceuticals (AMEX: AVN), Bionutrics Inc (OTC: BNRX), Brilliant Digital Entertainment Inc (AMEX: BDE), Bravo! Foods International Corp. (OTCBB: BRVOE), Butler National Corp (NASDAQ: BUTL),Calypte Biomedical Corp (OTCBB: CYPT), Chemtrak Inc/DE (OTC: CMTR), Clicknsettle Com Inc (OTCBB: CLIK), Corporate Vision Inc (OTC: CVIA), Crown Laboratories Inc/DE (OTC: CLWB), Dental Medical Diagnostic Systems Inc (OTC: DMDS), Detour Media Group Inc (OTC: DTRM),
Also, Digital Privacy Inc/DE (OTC: DGPV), Senior Services Inc (OTC: DISS), International Inc (OTC: DYNX), Endovasc Ltd Inc (OTCBB: EVSC), Esynch Corp/CA (OTCBB: ESYN), Focus Enhancements Inc (NASDAQ: FSCE), Frederick Brewing Co (OTC: FRBW), Greystone Digital Technology Inc (OTC: GSTN), Havana Republic Inc/FL (OTCBB: HVNR), Henley Healthcare Inc (OTC: HENL), Hollywood Media Corp (NASDAQ: HOLL), Ibiz Technology Corp (OTCBB: IBZT), Diagnostic Systems Inc/FL (OTCBB: IMDS), Imaging Technologies (OTCBB: IMTO), Integrated Surgical Systems Inc (OTCBB: RDOC),
Also, Interferon Sciences Inc (OTC: IFSC), Interiors Inc (OTC: ITRNA), Laminaire Corp (OTC: THMZ), Medisys Technologies Inc (OTC: SCEP), Milestone Scientific Inc/NJ (AMEX: MS), Nevada Manhattan Group Inc (OTC: NVMH), Innovations Inc (OTCBB: NTGE),Systems Group (OTC: OSYM), Pacific Systems Control Technology Inc (OTCBB: PFSY), Professional Transportation Group Ltd Inc (OTC: TRUC), Rnethealth Inc (OTC: RNTT),
Also, Sand Technology Inc (NASDAQ: SNDT), Sedona Corp (OTCBB: SDNA), Silverado Foods Inc (OTC: SVFO), Stockgroup Information Systems (OTCBB: SWEB) Surgilight Inc (OTC: SRGL), Tasty Fries Inc (OTCBB: TFRY), Tech Laboratories Inc (OTCBB: TCHL), Teltran International Group Ltd (OTC: TLTG), Titan Motorcycle Co of America Inc (OTC: TMOTQ), Trans Energy Inc (OTCBB: TSRG), Motorcycle Co (OTC: UMCC), Universal Communication Systems Inc (OTCBB: UCSY), Medical Systems Inc (OTC: UMSI), Vianet Technologies Inc (OTC: VNTK),Viragen Inc (AMEX: VRA), Webcatalyst Inc (OTC: WBCL), Worldwide Wireless Networks Inc (OTCBB: WWWNQ), and ZAP (OTCBB: ZAPZ).
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LAS VEGAS -- (Business Wire) -- Oct. 7, 2004
U.S. Canadian Minerals Inc. (OTCBB: UCAD) announced today that Langley Park Investment Trust Plc was admitted to the Full List of the London Stock Exchange and that dealings in Langley shares commenced on Oct. 7, 2004. U.S. Canadian had previously signed an agreement with Langley to engage in a transaction for the funding of the company. The agreement calls for the purchase, by Langley, of U.S. Canadian Minerals Inc. common shares, valued at the time of the closing at $9,005,355 USD, in exchange for shares of the investment company.
Langley has been established specifically to invest in U.S. micro cap companies with long-term growth potential.
Langley has entered into a "lock-up" agreement with U.S. Canadian Minerals Inc. pursuant to which it has agreed not to trade U.S. Canadian Minerals Inc. shares it will receive as a result of this transaction for a period of two years from the closing date. In full payment for the shares of U.S. Canadian Minerals Inc., Langley will issue to U.S. Canadian Minerals Inc. $9,005,355 USD equivalent of its shares at a price per share valued at One Pound Sterling.
Fifty percent of Langley's shares issued to U.S. Canadian Minerals Inc. will be held in escrow for two years following their issuance and in the event the per share market price of U.S. Canadian Minerals Inc. common stock at such time is less than the per share value of U.S. Canadian Minerals Inc. stock at the time of the closing, Langley shall be entitled to the return out of escrow a percentage of the investment company's shares equal to the market value of such decline. The remaining shares held in escrow shall be released to U.S. Canadian Minerals Inc. at the time of any such
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Statements contained in this document which are not historical fact are forward-looking statements based upon management's current expectations that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements.
Contacts:
U.S. Canadian Minerals Inc.
Chris Hanneman, 303-220-8476
That's true Magnum, but the company released that news on September 30 after the weekly edition of the NJ was published.
http://www.shoregold.com/news.html
navo,
that Shore Gold PR magnum posted is from a weekly newspaper, the Nipawin Journal. The news came out on September 30.