For what it's worth.
>From our perspective, Bresea is alive and well but temporarily has a cold. What will be required to restore it to full health is a commitment on the part of ALL Bresea shareholders to STAND UP FOR THEIR RIGHTS and persuade the VERY small number of MINORITY SHAREHOLDERS behind the class-action suits (that include Bresea) that it will be in their best financial interest to request that their lawyers withdraw Bresea's name from the suit. This would focus the suits on Bre-X, past Directors and other parties (directly related to the hype) where they belong and allow Bresea to get on with business.
To the best of our knowledge, Bresea has $25M in cash, however by now, given legal and receiver expenses that is probably less than $22M. By the time Price Waterhouse is finished that may be down to $20M.
Even so, if Bresea is forced into bankruptcy, at 65M shares outstanding, at best, that comes out to approximately 30 cents per share CDN upon liquidation (not counting the lawyers' cuts). If instead the corporation is maintained as a viable entity the stock price could be worth a multiple of this.
For example, compared to a healthy company like Yamana, which had $18M cash and $16M in properties at the end of 1997 and currently is trading at a price of $1.60, there is no reason Bresea's share price could not be in the same ballpark given reasonable management and the current opportunities to acquire proven/producing mineral properties at bargain prices.
I personally would rather have the opportunity to get $1.60 per share instead of $.30 per share. Wouldn't you? And if gold ever gets back to $330 an ounce it could be a multiple of this (Yamana has traded as high as $4 over the past year).
Price Waterhouse has to render an opinion concerning Bresea's "insolvency" to the Alberta Court of Queen's Bench by June 30, 1998. In the meantime we are still lobbying for the convening of a Shareholder General Meeting and proposing a slate of high-quality industry experts (who have no ties to David Walsh) for the Board of Directors.
For further information go look at our web site
officetower.com
For those Bresea shareholders who are interested in helping, the form to print out and send in is called "Shareholder's Statement of Support".
Regards,
Don Clarke
BSR Group of Shareholders |
