FALSE STATEMENT IN 1997 ANNUAL INFORMATION FORM
Armand Beaudoin (former Java President/CEO/Director)is criticised for the following false statement in the Annual Information Form of Java Gold Corporation, prepared 30th June 1998:
"Toson Deposit, License 066
Renovations and restructuring of the alluvial gold recovery test plant were carried out by the Corporation in the first half of 1997 for the purpose of carrying out a large bulk testing program on the Toson Terrace Deposit. The test plant was located at the Toson Terrace Deposit in June 1997, and commenced operation with material from various test pits."
According to The JVAG Report, this statement is not merely an edited version of the truth, but contains THREE serious factual errors:
1. It was NOT "a test plant" - it was a full-blown attempt to be a large-scale prodction plant.
2. It was NOT "a large bulk testing program" - a full-scale production target of 10-12,000 ounces for 1997 was set and attempted (and failed).
3. It did NOT commence operation "with material from various test pits" - material was mined and processed from two immediately adjacent full-scale production pits in the same placer deposit.
According to The JVAG Report:
"...the scale and nature of the factual errors is sufficient to imply that the sole purpose of the text was to deceive and mislead existing and potential shareholders, whereby the failed attempt to get into a large-scale profitable mining operation, with huge losses incurred, posing doubt on the competence and ability of the Board and officers, had been nothing more than a "bulk testing program."
Anyone who made an investment decision based upon the Annual Information Form of 1997 (i.e. 30th June 1998) may have a claim and should seek appropriate legal advice.
Robin Grayson
Author of The JVAG Report
General Director of Eco-Minex International Co Ltd |
