Jesse and all, (from the Source,October 3, 1997 Insider Report)
Kazakstan Goldfields [KGFC.CDN]
We knew the 'Source' had good connections and had a knack for
knowing insider info, but we are impressed today! In an e-mail sent to us at 1:00 Eastern, he is telling us that Mr. Kazegeldin, President of Kazakstan is out of office. This information, from what we have been able to find, has not hit any world newswires as of yet.
If this information turns out to be true, we will upgrade the 'Source' to 'Source 007'. :)
The latest from the 'Source':
Breaking news which in a nutshell is a significant turn of events for KGFC, and you herd it first here in the Insider Report...
The word is that the president of Kazakstan, Mr. Kazegeldin, now ex Prime Minister, is out of office and replaced temporarily by Deputy
Prime Minister Mr. Yesimov and he will probably remain in office on a permanent basis until election. The rumor is that the ex Prime Minister had his hand caught in the cookie jar.
Kazegeldin is an old communist and in many ways ideologically, still thinks that way, i.e.: Is very suspicious of westerners partly due to his self-admitted affiliation with the KGB. The new Prime
Minister, Yesimov is pragmatic, pro-western, pro-investment
technocrat.
As well, the Government is undergoing drastic change with the aim of shedding its ever-tarnished image. To that end, the State Property
Commission is becoming part of a pro-investment committee focusing
on encouraging western investment rather than a body with socialistic
purposes and views which interfered with the free market as seen with
KGFC and WWS. It is expected that these changes would be in place
by November 1997.
I may also add that prior to these events, the Central Government is the only body of authority in Kazakstan who can cancel any government contracts such as with KGFC. The Central Government had not
approved the cancellation of the management agreement and returned all
documents to the local authorities with instructions to resolve or
negotiate the dispute in accordance with the terms of the management
agreement. The parties are currently negotiating a resolution and there appears to be a third party involved.
On other related events, the share price of KGFC moved up recently
from $0.06 to as high as $0.20 due to an article written by James
Davidson of the Strategic Investment, September 17, 1997, issue. Mr. Davidson said "KGFC at $0.06 will either go to zero, or rebound
substantially."
With these recent events, what do you think?
The Source... I'll be back!!! |
