HI GE people. Here is my "opinion" on the 8K that was posted......
I have clipped the most important parts of this document (IMHO) from the 8K my comments are in <<>>. Some have responded that this document is OK or neutral but IMO it is not! This document clearly indicates that this "process" will be as a minimum 6 months long and probably a year!! Sorry for the bad news, but thats the way I read it and see it! Feel free to be critical of the breakdown.
Registrant is interviewing other independent mining/mineral/geological consulting firms to review, audit, amend, and correct, if necessary, the report of Guido Paravicini, and otherwise advise Registrant. If and when results are available and if appropriate for release, Registrant may release information.
<< For "any" independant to review, audit, amend and correct, that "independant must verify the original data. The only way to do that is to "resample, re-asssay, re-analyze">>
The Securities and Exchange Commission has notified Registrant that it believes that the news release by the Company about the report on May 22, 1998 may have been released without a sufficient basis as to the reliability of the report. The Commission staff has raised questions concerning the methodology, analysis and preparation of the report. Registrant has determined that, in light of the SEC position, it is not appropriate to publish the report or further excerpts therefrom or to file it as an exhibit on Form 8-K. The Staff of the Central Regional Office of the SEC has notified Registrant that it is considering recommending to the Commission the amendment of its current action against Registrant to include violations [including Section 10(b)(5)] which may have resulted from the May 22, 1998 press release. That notification also permits Registrant, as well as its president, Mr. Terry C. Turner, to make a Wells Submission, which is a written statement setting forth their legal position regarding the May 22, 1998 press release.
<< when the SEC questions "methodology, analysis and preperation of a report", the report becomes useless as even a baseline document>>
Registrant is in the process of significant critical evaluation, review and analysis of the Report of May 1998 by Guido Paravicini. Shareholders and potential purchasers of Registrant's shares are advised that the Report, and any results from such report, are subject to substantial and material changes including reduction or elimination of "reserves". As analysis, evaluation, and review are completed, and if changes, corrections, additions, recalculations or modifications are made in the report, the results from such report may need to be substantially restated. Registrant is interviewing well-respected mining/mineral/geological consulting firms to perform an audit, analysis and review of the report, the methods used, the calculations made, and the engineering and geology contained therein. There can be no assurance that a new independent firm will confirm any "reserves" or "mineralization" on the Cangalli concessions, and such new report, if adverse, may result in substantially negative findings regarding the Cangalli Concessions, which are the subject of Registrant's contract rights.
<< a further indication that the report will not even be used as a baseline document. More importantly it raises the spectre, even though it may not be warranted of, "There can be no assurance that a new independent firm will confirm any "reserves" or "mineralization" on the Cangalli concessions,"..... which will hardly be reassuring to future investors.>>
2. Performance of necessary field work to evaluate the reliability of Mr. Paravicini's geological interpretation of the Cangalli concessions' mineralization, and to verify previously-performed sampling work orresample, as deemed necessary;
<< this statement in itself is the most worrysome. This could result in extensive resampling as stated before, Estimated time for this program could be as short as 6 months but also as long as 12 months.>>
Registrant is currently substantially indebted for small operating loans and one large revolving line of credit from a Texas bank. For the foregoing, Registrant is not in a financial position to develop any resources or reserves which may exist on the Cangalli concessions in any significant manner. Registrant's financial ability is very material to consideration of any investment decision by Registrant's shareholders or prospective shareholders.
<< the SEC does not pay for this investigation, this is why the 10,000,000 share issuance I presume>>
Good Luck to all
the Chief |
