Bre-X - Is it a good buy at these levels ? Message Board

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Gold/Mining/Energy : Bre-X - Is it a good buy at these levels ?

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To: vinod Khurana who wrote (2)	4/2/1997 1:57:00 PM
From: vinod Khurana	of 75

Bre-X fails to obtain longer trading halt TORONTO - Trading in shares of Bre-X Minerals resumed Tuesday despite company pleas that it remain halted until further tests resolve the furor over claims about a huge gold discovery in Indonesia. The value of Bre-X stock plunged by more than 80% - a loss of more more than $2 billion - in a one-day sell-off Thursday after the company revealed its discovery may have been exaggerated because of inaccurate tests. The sell-off ensued when Bre-X's development partner, Freeport McMoRan Copper & Gold Inc. of New Orleans, announced that its own independent initial analyses of core samples showed insignificant amounts of gold. Trading in Bre-X shares was halted Monday on the Toronto Stock Exchange. Bre-X asked that the suspension be extended until Freeport McMoRan finishes its tests and an independent mining consultant completes an audit. That could take four weeks or more. Exchange officials allowed trading in Bre-X to resume Tuesday. Shares opened at $2.95 Canadian ($2.12 US), up 45 cents from the last trading price Thursday. Also Monday, a class-action lawsuit was filed in New York on behalf of Bre-X investors alleging that officials of the small Calgary-based company sold off some of their shares at a huge profit before serious questions were raised about what was purported to be the biggest gold find of the century. Bre-X president David Walsh - who says he stands by the company's claims - repeated earlier threats to sue his company's critics. Bre-X's estimates that the Busang site on the island of Borneo contains at least 71 million ounces of gold had made the company a favorite with Canadian and U.S. investors. Shares purchased for a few cents in 1993 were worth more $200 by last September. Indonesia has asked a team of experts to examine the gold deposits. The law firm of Milberg Weiss Bershad Hynes & Lerach said a class-action lawsuit was filed in Manhattan federal court on behalf of all investors who held Bre-X common stock between August 13, 1996 and March 26, 1997. Walsh, his wife and other Bre-X officials reported their sales of Bre-X stock to authorities, and they have denied violating any securities trading regulations. By The Associated Press V.K

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