Calais Resources (CAAUF)

[Stock]

He updated his take after the suspension:

CALAIS RESOURCES: The Colorado miner and prospector (CAAUF) saw its stock in the U.S. halted the other day. The U.S. Securities & Exchange Commission requires Calais Resources to file fresh quarterly reports. The SEC said in its Feb. 24 statement, “The Commission temporarily suspended trading in (Calais) due to a lack of current and accurate information … because (it) has not filed certain periodic reports with the Commission.”

I visited Calais Resources’ Caribou Mine in early February and wrote about the company: See Stockhouse coverage. Calais must run a fine-tooth comb through its financial statements going back many quarters (2005 to 2010) if it ever is to gain acceptance among investors.

Dave Russell, the CEO, chairman and 54-year-old Colorado miner who stepped into the company’s corporate office about 41 days ago, says he expects the financial statement repairs to happen soon. His COO, Dave Young, is a chemist who has been trying to cut corners and keep Calais alive with scants amount of financing the past year, Mr. Russell said.

“Dave Young's largest hurdle, from what I can see over the last year or so, was trying to work through boxes of financials and keep the company going without much financing to work with. In the past eight or so, the financing has come from close associates, friends and family and the company is getting repaired accounting wise and audit wise as we speak,” Mr. Russell told me.

We will see. Mr. Russell assures me none of the top three at the company – Mr. Young, mine founder and 40-years-and-running operator Thomas Hendricks and Mr. Russell himself – has sold any shares in the 80 percent or so run-up in the Pink Sheet shares after my first report was published in early February. See Stockhouse coverage.

“There was no intention of raising money to solve the debt situation before the financials are brought current with the SEC and BCSC,” Mr. Russell said. “I personally hold 100 percent of any shares I have acquired over time and have never sold one share. The specific reason I came directly into the company is that I have a very large investment in the Calais Company and I believe in the geological and mining assets.”

He said Calais will work with the SEC to “develop a timeline and filing schedule to bring the company current.”

The Caribou Mine has potential as a producing open-pit entity, according to my own visit and to conversations I have had with geologists, including Quinton Hennigh of Evolving Gold (redacted). Still, CEO Russell must ensure investors, current and future, that he can get Caribou on track … and solve a debt load that runs above $10 million. Oh yeah, and change the Calais name, would ya?

http://www.stockhouse.com/Columnists/2011/Mar/1/These-silver-juniors-continue-to-March-on