<<<<<Bro-X currently has no employees, other than Devlin, assets of about $800,000 cash and two worthless Indonesian mining properties>>>
We even got the golden "cow"..... lol 2 actually.... contracts of work for the properties.
If you don't know here ya go.....
bresea.com
Here's the story......
Regards
FP
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Bre-X Saga
Bre-X subsidary asks shareholders for cash infusion and a new name
Bre-X stories archive
CALGARY (CP) Ñ It could be seen as throwing good money after bad, but the chief executive of Bro-X Minerals Ltd. Ñ a subsidiary of disgraced Bre-X Minerals Ñ is asking shareholders for a multi-million-dollar cash infusion to keep Bro-X breathing.
Tom Devlin, incoming Bro-X president and a long-time acquaintance of now deceased Bre-X founder David Walsh, made the pitch to a handful of shareholders Wednesday at the companyÕs first annual meeting in almost three years.
ÒThere are 19,200 Bro-X shareholders out there and all those shareholders wonÕt get anything if Bro-X is wound up,Ó said Devlin after the 14-minute annual meeting at a tony private club in downtown Calgary.
ÒWeÕve got interest from over 400 (shareholders). It feels good something is starting to happen to get Bro-X out of the Bre-X mess.Ó
Devlin, 55, was a Bre-X executive who made $3.5 million on paper from the sale of stock options. But he lost the money when he reinvested in the company just before its Busang gold mine turned into one of the biggest frauds in mining history. Bre-X went bankrupt last year.
Bro-X has asked shareholders to participate in a rights offering to raise a minimum of $750,000 and possible maximum of $2.25 million. Proceeds from the offering would be used to pay off a $2-million claim being made by Bresea Resources Ltd. Ñ the parent company of Bre-X and Bro-X Minerals.
Bresea Ñ named for WalshÕs sons Brett and Sean Ñ has agreed to convert two million preferred shares it holds in Bro-X for $750,000 and 1.25 million common shares of Bro-X and not push the tiny resources company into bankruptcy.
David Walsh died of an aneurysm at his Bahamian estate last June. The Walsh family still own about one million Bro-X shares.
Bro-X currently has no employees, other than Devlin, assets of about $800,000 cash and two worthless Indonesian mining properties.
If enough shareholders pony up, Bro-X is likely to merge with another junior company in the oil and gas sector. MacDonald Oil Exploration, which has an oil concession in Cuba, had hoped for a merger of the two companies before an exploration program begins there later this month.
The other possibility would be for Bro-X to adopt a proposed new name of Valient Ventures Ltd. to distance itself from Bre-X and strike out on its own.
Roger Koss, a retired Imperial Oil Ltd. employee, was one of the few shareholders to show up at the meeting. He lost about $60,000 on Bre-X and had another $60,000 invested in Bresea.
ÒI have some hope Bro-X could breathe again if everybody subscribes,Ó he said after the meeting. ÒBut my hopes are more with Bresea, it would mean a lot more to me.Ó
Koss didnÕt see anything wrong with Devlin remaining in charge of Bro-X despite his connection to Walsh. He also suggested if anything was amiss with Devlin itÕs unlikely heÕd still be in Calgary.
ÒI donÕt think people like Tom Devlin would be here, heÕd be with (Bre-X) head geologist John Felderhof.Ó
Felderhof has been holed up at his Cayman Islands estate since the Bre-X meltdown, estimated to have cost investors at least $3 billion.
Bresea, which is negotiating to free itself from the Bre-X lawsuits, has about $30 million in assets Ñ $25 million cash and Bre-XÕs office building.
Clint Docken, a Calgary lawyer representing jilted investors, said a Texas judge will issue a decision March 23 on whether Canadians can participate in a U.S. lawsuit against various brokerage houses and Bre-X.
The judge had earlier ruled Canadian investors couldnÕt participate because the violations alleged in the lawsuit hadnÕt taken place in the United States, but new information may change his mind, said Docken.
An Ontario-based class action suit is still awaiting approval from the courts on whether it can proceed.
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