Today's GV Union
Brush Creek CEO says he resigned
By S.E. Humphries - Sat, Nov 21, 1998
The former president and chief executive of Brush Creek Mining and Development Co. says he was not forced
to resign or fired but rather stepped aside for Larry Stockett, the company's new leader.
Brush Creek is a Grass Valley mining company; its stock is publicly traded.
"It was I who approached Mr. Stockett in Las Vegas and asked if he had any ideas as to how to restore value to
Brush Creek shareholders," former president Jim Chapin said in a written statement Friday. "He indicated that
his ability to raise cash and implement his plans would be enhanced if he were to take over the positions of
CEO and chairman of the board of directors.
"A board meeting was held and I resigned ... to allow Mr. Stockett to step in," Chapin said.
Referring to a quote from Stockett in a story in The Union Thursday, Chapin also said that "the idea that I was
fired because Volcanic Resources had lost confidence in me is ludicrous."
Volcanic Resources is a former partner which Brush Creek contends failed to make a promised $1 million
payment in July, forcing Brush Creek to lay off its workforce and eventually close its office. Brush Creek is in
litigation with Volcanic Resources and others.
A Las Vegas entrepreneur who has been in town since taking control of Brush Creek on Monday, Stockett did
not say Chapin was fired, contrary to a headline on the Thursday story in The Union. Stockett indicated that
Chapin was asked to resign. He reiterated the statement Friday.
The story "very fairly treated" the situation, Stockett said. Chapin, he said, "was asked to resign."
Stockett's plans call for the eventual creation of a holding company with several of his other enterprises,
including a new cement plant near Las Vegas and a geological consulting company in southern California.
Since Stockett took control, Brush Creek's stock has increased from 25 cents a share to a Thursday high of $1.
The stock closed at 69 cents a share Friday.
One of the board members, Kenneth Friedman of Golden, Colo., agreed with Chapin that the board did not fire
him. "Mr. Stockett's 'rescue' of Brush Creek was indeed solicited, and Mr. Chapin made the original contact,"
Friedman wrote in a statement Saturday.
Chapin said board members have asked him to stay on with Brush Creek as a consultant. "My wife and I have
worked tirelessly on behalf of Crush Creek shareholders over the last four and one-half years."
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