Here is another FWIW:
Ganymede Capital Corporation
2403-1644 Nelson Street
Vancouver, BC
V6K 3K7
Shareholders of FM Resources Corp.
For the Record - July 2nd, 1998
On June 24th, 1998, in the Annual Information Circular the Company
has chosen to portray the Petitioners Supreme Court Of British Columbia Action
#980972 as the Barron Group. The Petitioners are not the Barron Group. The
Company has used my past sanctions under the Securities Act of Alberta to try to
discredit the Petitioners. Yes, I have had sanctions against me in Alberta and I
cleared those sanctions on October 19, 1997. The majority of my insider trading
was declared and filed on time. There were several reports that were not filed
within the prescribed 10 days. I will ask for copies of the files from the
Alberta Securities Commission.
The Petitioners (the Requsitionists) retained Ganymede Capital Corporation to
assist the Petitioners on alternatives to the extreme consolidation and advise
them on financing and property acquisition. I have had extensive experience in
the financial and mineral exploration markets. I have extensive knowledge and
contacts in especially in Newfoundland.
Upon my retainer with the Petitioners I advised the British Columbia
Securities Commission of my involvement with the Petitioners and my past
sanctions in Alberta. There were only two sanctions. I was I believe the first
in Alberta to enter into an agreed statement of facts with the Alberta
Securities Commission.
One could say after seven years in the hinterland that I have learned my
lesson and understand the workings of a public company including promotion,
mineral property evaluation and financing. I also understand and recognize the
duties, obligations, the liabilities of directors and the requirements under the
Securities Act for true and timely disclosure on the affairs of a public
Company.
It was because of the above mentioned sanctions that I advised Roger Baird
that I would not consider a nomination for the board of directors. I would
however provide access to properties and financing with an alternative to the
consolidation. I have further advised Roger Baird that all properties I
presented to the Petitioners for acquisition by the Company would be qualified
by an independent consultant.
In the Presidents Report they state that the various submissions of the
Petitioners incorrectly represented by FM Resources Corp. as the Barron Group
contained a number of inaccuracies and unfounded allegations. All statements and
allegations contained in the June 9th, 1998 letter to shareholders
from Roger Baird are contained in documents that have been submitted to the
Supreme Court of British Columbia Action #980972. The Company has had an
opportunity to respond to those allegations in the court, they have chosen not
to respond. They have not provided any demand to the Petitioners or to Gordon
Barron to tender any amendments.
It is the belief of the Petitioners and Ganymede Capital Corporation that the
financing discussed in the business plan would give all past investors a chance
to average down on their investment in this Company. There are some investors in
this Company that have a cost base in excess of $135.00 per share, given the
20-1 consolidation. Perhaps these investors would like to participate in the
financing and elect a new board of directors. The plan called for the filing of
a prospectus on behalf of the Company in which all disclosures would be made
regarding the property, financing and exploration budgets. The filing of the
prospectus would give all investors small or sophisticated the opportunity to
participate because there would be no minimum subscription.
For the record I have no involvement in the Glover Island Project. I
presented both projects as described in the business plan to Mike Bourdeau and
Lu Manning at the offices of FM Resources on June 10th, 1998. How
they can now call them base metal targets is beyond me because they are both
gold exploration targets. It is my belief that the Tilt Cove Mine and Glover
Island Projects are far superior to the projects now held and promoted by the
current board of directors of FM Resources Corp.
The business plan does not make mention of any of the current properties of
FM Resources Corp for obvious reasons. On June 4th, 1998 I asked FM
Resources Corp. to provide information on the properties so as to make an
evaluation and further recommendations to the Petitioners regarding these
properties. They refused.
Here is what I know of the properties. Firstly, the LaForma Property is now
controlled by BYG Natural Resources as to 51% and FM Resources Corp. 49%. The
Petitioners have always questioned the agreement on the Whalesback Shoalarm
property because of the involvement of Glen White. Glen White is a consultant to
British Canadian Mines. This was confirmed by Lu Manning at the March
25th, 1998 Extraordinary General Meeting and through my personal
conversations with friends of mine in Newfoundland. Does this make FM Resources
Corp the White Group?
The Company has chosen to point to me to try and discredit the Petitioners.
When you point it must be remembered that there are several fingers pointing
back at those doing the pointing. It is the directors actions of FM Resources
Corp that are in question here, not mine. It was the directors of the Company
that represented they were putting a mine into production with a reserve figure
of 700,000 ounces of gold with potential of 2-5 million ounces. The rest of the
history you have experienced.
At this moment in time two former directors; White and Thomas are on trial in
the Provincial Court of BC regarding the misrepresentations on the reserve
figures published by the Company. I have attended every day of that trial. It
has been adjourned until July 13th, 1998. I believe that the BC
Securities Commission hearing is on hold until the criminal trial is completed.
On August 24th - 28th, 1998 the Company must face the Petitioners in
the Supreme Court of British Columbia.
The Petitioners forwarded all information on the slate of directors and the
Business Plan to be inserted into the Annual Information Circular so that all
shareholders could be made aware of the choices for this Company. Although this
information was submitted to the Company within the required time frames they
refused to include it.
Therefore the Petitioners must once again ask the court for further direction
on certain aspects of this proceeding. We will report to you in due course.
Regardless of the size of your shareholdings your vote is important to the
Petitioners and we ask for your support at the Annual General Meeting on July
30th, 1998.
If you have any questions please call me at 604-732-3722.
Yours truly,
Gordon Barron
President
Ganymede Capital Corporation
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