What concerns me is the section called contingencies in the financial statements.
They are:
a) The company had an amount payable to Bre-X minerals Ltd. of approximately $89,000 representing payments for mining property expenditures made on the company's behalf to third parties and its share of common administrative costs. Despite Bre-X Minerals Ltd. demand for repayment of the amount, the Company disputes the validity of the payable in its entirety and has not recorded this debt.
b) Bresea Resources. Ltd. is the holder of the 2,000,000 preferred, series 1, shares on a one for one basis and retractable at $1.00 per share. The interm receiver of Bresea Resources Ltd. has issued a retraction notice for $860,000 of the preferred shares which the Company has refused to honour as it would render the company insolvent. The Company has entered into an agreement with Bresea Resouces Ltd. through its interim manager, whereby Bresea, subject to a successful rights offering, will redeem
$750,000 of its preferred shares and convert the balance (1,250,000) of the preferred shares to common shares in the Company. The agreement further provides that if the proposed rights offering is not successful that the Company will not object to nor impede Bresea's right to realize upon the preferred shares, and in particular will not object to a winding up application of the Company, undertaken by the
imterm receiver manager on behalf of Bresea.
That when i read it will typing it sounds like we are screwed one way or the other so..... |
