From Larry Stockett as posted on Yahoo-
Forgive me if this has been posted here already, I might have missed it.
Stockett's status report from Grass Valley
by: lstockett (51/M/Las Vegas, NV)
15051 of 15061
From: L. Stockett
Status Update from Grass Valley
I have been in Grass Valley for two days now along with one of my senior staff, Dale Olive. We have reviewed the company books and
records, visited the recently closed offices, and met with three representatives from the company's independent auditors, Armstrong &
Company. I retained them to conduct the audit of Brush Creek and to prepare the financial disclosures required for the 10-q and 10-k
annual report to the SEC. I paid a $10,000 retainer, signed the engagement letter and agreed to pay $30,000 total for the annual audit.
They agreed to work around the clock and use their best efforts to prepare the materials for the filings to be submitted to the SEC and
NASD.
I also met with Michael Skopos who was the chief geologist for Brush Creek in 1990-91. He had a wealth of information on the Brush
Creek holdings and believes very strongly that Brush Creek properties still contain valuable gold deposits that have not been discovered.
He agreed to independently review the drilling and mining logs, sample results and other mining work done since 1991 and provide a
written proposal as to his recommendations as to the most economical program with the highest probability of achieving profitable
operations in the shortest period of time.
McLauglin Engineering and Mining representatives also arrived in Grass Valley late this evening and plan to tour the mines with Dale Olive
and myself tomorrow. Dale's primary responsibility will be to make a physical inventory of the company's equipment assets, and an
estimate of their condition and value. The company has over $3 million of equipment assets listed on its balance sheet which may be used
as collateral for refinancing the company if settlements can be made with creditors who currently have liens on the equipment. The goal will
be to reach debt settlement agreements as soon as possible and make sure the assets are being physically maintained and protected from
foreclosure or liquidation below their value.
The work is proceeding on schedule and as anticipated in terms of identifying all of the critical issues necessary to resolve the legal and
financial problems of the company. I feel quite confident that the problems are all solvable or else I would not have committed the $30,000
necessary to bring the company into immediate reporting compliance.
I want to thank all of you who have supported me with your confidence and stock market support which resulted in the stock reaching one
dollar per share. As I am sure you are aware this is the minimum maintenance requirement for the company to remain listed on NASDAQ
and an important milestone in restoring value and confidence in the Company's stock.
I will continue to provide updates from Grass Valley during my visit, however, I am unable to retrieve my e-mail while I am out of town, so
please accept my apology if I have not responded to your private email messages.
It is already beginning to look like Christmas here in Grass Valley. |
