Hi all,
Todays Release
STARPOINT GOLDFIELDS INC.
2323C Dollarton Highway
North Vancouver, B.C. V7H 1B2 Canada
Tel: 604-929-7182 Fax: 604-929-7152
January 22, 1999
* * * N E W S R E L E A S E * * *
STS:VSE
The Company has received many requests from shareholders asking it to comment on the Rule 18A Summary Trial on January 11, the subsequent decision by Madame Justice Mary Saunders and the Company's Counter-Claim against Global Securities.
Starpoint is seeking substantial damages from Global by way of the Counter-Claim and alleges, among other things, that Global and certain of its principals breached their fiduciary duty to the Company at a time when the Company was negotiating a $5 Million brokered private placement financing with Global which was announced on August 29, 1996. Global then advanced the Company $300,000 in October 1996 secured by a Promissory Note. The Company's position is that the $300,000 loan from Global was an advance towards the $5 Million private placement and alleges further that during the period August through November 1996, Global engaged in a pattern of trading and other acts or omissions that were detrimental to the Company and prevented it from not only securing the financing but also from completing the acquisition of the Yetwene Diamond Concessions in Angola. The Concessions were subsequently acquired by DiamondWorks in 1997 who developed the property and began mining operations in June 1998.
Justice Saunders refused Global's request to dismiss the Company's Counter-Claim. The Company has received and submitted to the Supreme Court, a forensic audit report which the Company alleges supports the allegations contained in the Counter-Claim filed by the Company. Justice Saunders awarded Global Securities Corporation judgment against the Company for $300,000 plus interest, but stayed execution pending progress of the Company's Counter-Claim against Global and Arthur Smolensky.
The Company continues its efforts to develop its gold and diamond and tantalite properties in the Democratic Republic of Congo. It appears the civil war, which erupted in Central Africa in August 1998, is being resolved. Starpoint is in close contact with government officials and expects stability to return to the Congo in early 1999.
ON BEHALF OF THE BOARD OF DIRECTORS
STARPOINT GOLDFIELDS INC.
Richard Ilott
President
The Vancouver Stock Exchange has neither approved nor disapproved of the contents herein |
