Post says ruling expected Jan. 28 in "Mini Bre-X" case in B.C.
FM Resources Corp FMR
Shares issued 1,536,355 Dec 30 close $0.12
Thu 31 Dec 98 In the News
The National Post reports in its Thursday edition that two former officers
of a B.C. mining company will learn their fate next month in a case
regulators are calling Mini Bre-X. A B.C. provincial court judge is to rule
Jan. 28 after the fraud trial recently wrapped up against Glen Elmo White,
the former president and chief executive, and David Thomas, the former
chief operating officer, or Redell Mining Corp. Since April, Redell has
been trading under the name FM Resources Corp. on the VSE. The pair, who
were also directors, jointly face 20 charges under the Securities Act over
allegations that gold reserves were inflated during a two-and-a-half year
period for the company's La Forma project, near Mount Freegold in the
Yukon. Prosecutors allege the company inflated the property's reserves from
170,000 ounces to over 850,000 ounces of gold, whereas a latter independent
review could only confirm a resource of 70,000 to 90,000 ounces. During the
alleged period, the company raised about $3-million in financing through
private placements.
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