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Gold/Mining/Energy : Flag Resources (FGR.A A) -- Ignore unavailable to you. Want to Upgrade?

To: Scripts who wrote (2835)	3/15/2000 11:30:00 PM
From: jbr29	Read Replies (1) \| Respond to of 4269

Hi Ed, I am at work here, so I do not have any of my Flag Statements here with me except for the 1996 Annual Meeting report. The annual meeting was held on Dec 31, 1996. Under the "Stock Options" section it states: "Options to purchase 745,000 Common Shares have been granted to directors and executive officers as follows:" It then lists the number of options, the strike price and the expiry date for each officer. There are options granted to Walter Copp, Richard Dye Sr., Murdo McLeod, John W. Strath, Sidney Miszczuk, and William A.A. Breukelman. Almost all of the options expired worthless (including many issued to Murdo), except for the last one which was to Murdo for 200,000 options at exercise .60, expiring July 2, 2000. Flag had its last runup in October 1996, so by the Dec 31 meeting the price was retreating to around the strike (if not below). Flag did not have an appreciable run-up after that until this recent rise. So it is reasonable to assume Murdo still has/had these options. I also believe it to be a safe bet (although, as I said, I do not have the later statements in front of me) that more options were granted in subsequent years. With the stock price as low as it has been, it is probable that the strikes on those options were on the low side. I believe it was stated by one of the posters that in December Murdo mentioned that he had purchased 10,000 shares. The 1996 report states that Murdo was paid $500 a week and $300 per day for expenses while on site. The compensation may have increased since, but that is not a mountain of money. My observation was that it was possible that Murdo sold into this price rally, if only to facilitate his retirement. I am not here to assassinate Murdo's character, but I am trying to clarify possible events. BTW, yes I think $38000 is significant, particularly if you are one of the folks who spent that much when the stock was trading over a dollar. I'll let others judge the worthiness of my posts.