CMKM Diamonds Inc (fka CMKX)

[Jim Bishop]

Here's the complete article.

Cease Trade Order issued to Casavant/CMKN Mining

The Saskatchewan Financial Services Commission (SFSC) has issued a Temporary Cease Trade Order on a Fort a la Corne diamond company after allegations of misrepresentation and other irregularities under The Securities Act.

By Colin McGarrigle of the Journal
Tuesday November 02, 2004

Melfort Journal — The Saskatchewan Financial Services Commission (SFSC) has issued a Temporary Cease Trade Order on a Fort a la Corne diamond company after allegations of misrepresentation and other irregularities under The Securities Act.

CMKM Diamonds Inc., formerly known as Casavant Mining Kimberlite International, was the target of the SFSC's Order after a complaint against the company led to an investigation.

Melfort resident involved

Melfort resident Melvin O'Neil, Urban Casavant and David DeSormeau, who are listed as officers, directors and promoters of the company, were also named in the Order.

O'Neil is the Investor Relations Spokesman for CMKM Diamonds Inc.

"We had a complaint sometime ago about the company and we did an investigation and this (Cease Trade Order) is the result," explained Vic Pankratz, deputy director of enforcement for the SFSC.

While Pankratz was tight-lipped about the details behind the investigation or misrepresentation, a news release stated, "The Securities Division is concerned about the trading activities of the companies as well as news releases they have issued about their operations."

CMKM is a fairly new diamond exploration company based out of Nevada that is traded in an over-the-counter market in the United States that is dubbed as "pink sheet" stock.
The company claims to own over 1.4 million acres of land in the Fort a la Corne area according to the company Web site.
The Order is in place until Nov. 9 or until the company provides sufficient information to the director of the SFSC.
"It's up to the company now, or the entities that are cease traded to take steps to provide us with the information that we can consider to see if we can lift the order," said Pankratz.

In the Order, the commission stated that CMKM Diamonds Inc. and its respondents (O'Neil, Casavant and DeSormeau) were not registered, traded in securities when no receipt had been issued and made statements which they know are misrepresentations.

Until the order is lifted, no shares can be traded.
A hearing may be held if the company does not provide sufficient information to the SFSC to consider whether a permanent cease trade order is necessary against the company and the respondents.

"We don't know what the company is going to do to respond to our issue here. Right now, the shares of Saskatchewan holders cannot be traded," explained Pankratz.

Asked if the shares would be worthless if a permanent order was issued, Pankratz said, "There's a lot of issues that have to be addressed for the order to become permanent and the interest of the shareholders would certainly be paramount in our mind if and when something like that happened."
If a hearing is held, Pankratz said that it would be open to the public. No date has been set for a hearing as of yet.

America follows suit

In a similar move, the U.S. Securities and Exchange Commission (USSEC) also announced a temporary suspension of securities of U.S. Canadian Minerals Inc., which states on their Web site that it has a 20 per cent revenue interest in 500,000 acres of "kimberlite-likely land" in Saskatchewan and has a 25 per cent interest in 27 claims comprised of 22,447 acres located near Smeaton.

In their suspension, the USSEC acknowledges the assistance of the SFSC in their decision, which stated that questions have been raised about the accuracy of publicly disseminated information concerning the financing and mining activities and the value of USCM purported assets.

U.S. Canadian Minerals Inc. officials and Melvin O'Neil of CMKM refused to respond to questions regarding the suspensions.

http://www.melfortjournal.com/story.php?id=125168