This will explain today's action in the "A" stock:
Dia Met founder in messy divorce
VANCOUVER (CP) - A geologist who struck it rich when he found diamonds in the Northwest Territories
now is embroiled in what could become the most expensive matrimonial dispute in B.C. history.
Charles Fipke of Kelowna, B.C., whose Dia Met Minerals Ltd. (DMM) made a dazzling diamond discovery
in the frozen tundra in 1991, is facing his estranged wife, Marlene, in court over how the family assets
will be divided.
Those assets include Fipke's stake in the resulting diamond mine which, at today's market value, is
worth about $335 million.
"There are numerous other assets," said B.C. Supreme Court master Neil Bolton, who is considering an
application by Marlene Fipke to move the trial, set for Nov. 29, 1999, to Kelowna from Vancouver.
Bolton said the assets include a family business in Kelowna, residential property in the Okanagan city,
other real estate assets and items Bolton described as "rich people's toys."
Fipke, a geology graduate from the University of British Columbia, was married to Marlene in 1966.
Together they had five children, now 16 to 32 years old.
In 1981, Fipke began hunting for diamonds in the Northwest Territories. Two years later, he established
Dia Met as his exploration vehicle and took it public on the Vancouver Stock Exchange.
By 1991, Dia Met had teamed up with Australian mining giant Broken Hill Proprietary Company Ltd. and
discovered diamonds at Lac de Gras, 300 kilometres northeast of Yellowknife.
Broken Hill subsequently exercised its right to acquire a 51-per-cent interest in the deposit. Dia Met
retained 29 per cent, and Fipke and fellow prospector Stewart Blusson each kept 10 per cent interests.
In October, the partners completed construction of Canada's first diamond mine, the Ekati mine. It is
expected to process $400 million to $500 million US worth of diamonds every year for the next 17
years.
Fipke's indirect interest in the project, through his Dia Met shareholdings, now is worth about $135
million. The implied value of his direct 10 per cent interest is $200 million, for a total of $335 million.
The Fipkes' impending divorce and division of assets is not expected to have an impact on Dia Met's
affairs or mine operations.
(Vancouver Sun)
I don't know why the rush to revalue the stock. This could take a while.
PHIL |
