More bad news. It just shows that you can not trust Pierre Gauthier on anything. I has been BS after BS every month. But he will be OK though because for him it is just a white collar crime at worst and total incompetence at best.
Saturday, June 20, 1998
KWG threatens countersuit
By PAUL BAGNELL
Mining Reporter The Financial Post
KWG Resources Ltd. said Friday a legal action against it by a creditor is "abusive and dilatory."
The Montreal-based mineral exploration junior said it may sue Financial Technology Research
Corp. for "utilizing the courts and the press to put undue pressure on [KWG] in an attempt to obtain
a settlement for a claim it knows is without merit."
KWG and its sister company, St. GeneviŠve Resources Ltd., are operating under a court-approved
plan to repay creditors after the companies sought protection under the Companies' Creditors
Arrangement Act late last year. The plan calls for creditors to receive shares of KWG and St.
GeneviŠve instead of the money they are owed.
The company said a preliminary prospectus for the share issues will be submitted to the Quebec
Securities Commission within a week. It will be another six to eight weeks before shares are issued
to a trustee, it said.
When creditors approved the plan on April 30, the companies predicted the shares would be issued
by early June.
On Wednesday, New York-based Financial Technology, which says KWG owes it $4.4 million,
asked Quebec Superior Court to overturn the repayment plan.
The company says KWG reneged on a deal in which Financial Technology was entitled to exercise
options to purchase shares of KWG.
In a press release Friday, KWG said Financial Technology did not perform the services it promised
and KWG never received an invoice for the debt being claimed.
It also says it told Financial Technology in 1996 it considered the claim invalid.
On Friday, Financial Technology fired back with a statement vigorously denying each of KWG's
claims.
KWG also said Friday work at its Ametistovoe gold project in Russia, the company's only
significant asset, has been halted while it looks for a new partner.
A deal in which KWG, through an affiliate, agreed to exchange its 80% stake in the project with
Astral Ltd. of Ireland for a 20% share of future profit has been terminated, KWG said Wednesday.
Shares of KWG and St. GeneviŠve trade without daily quotation on the over-the-counter Canadian
Dealing Network.
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