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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: E. Charters who wrote (45349)	7/21/2007 6:36:29 PM
From: marcos	Read Replies (2) \| Respond to of 78416

Globe goes after Paterson - 'Southwestern seeks answers from CEO ANDY HOFFMAN AND GRANT ROBERTSON 00:00 EDT Saturday, July 21, 2007 The former head of Southwestern Resources Corp. has yet to co-operate with the company's investigation into tainted drill samples from a gold project in China, but remains the scandal-plagued miner's largest shareholder, along with his brother, a onetime leader of a fringe political party. John Paterson, who abruptly resigned as Southwestern's chief executive officer last month, and his brother Neil Paterson together own more than seven million shares representing 16 per cent of the company, which revealed this week that drill samples from its flagship Boka project in China had been tampered with. John Paterson has so far not responded to a special committee's requests for more information regarding the drill samples, according to David Black, Southwestern's chairman. "He has not been co-operative and I have not heard from him," Mr. Black said in an interview. "[John Paterson] has not been forthcoming ... That's the nub of this." Mr. Black said. According to Vancouver-based Southwestern's annual information circular published in March, the Paterson brothers' Southwestern shares are held in a private Ontario company called Global Gold Corp. John Paterson is the company's president and owns 8.2 per cent of Global Gold while Neil Paterson owns 92 per cent, the documents said. The escalating scandal saw Southwestern shares lose more than half their value Thursday after the company withdrew all of its previously announced results for the Boka project, which had once been touted as a major gold discovery. From a peak market value in early 2004 of more than $800-million, the company's worth has plummeted to $102-million following a further 22-per-cent decline in the stock price yesterday. With his eye on the prime minister's job, Neil Paterson ran for Parliament in 1993 as head of the Natural Law Party. Inspired by former Beatles guru Maharishi Mahesh Yogi, the party claimed that if 10,000 people were brought together to meditate through yogic flying (lifting one's backside off the floor from a sitting position), the positive energy would create peace and harmony in the world. During the election campaign Mr. Paterson appeared on MuchMusic as part of a political debate. If elected, he vowed that his party would hire 7,000 yogic flyers as full-time public servants. The Natural Law Party failed to win any seats and ceased operating in 2004. Calls to the ex-CEO of Southwestern, John Paterson, were not returned yesterday. Meanwhile, a $220-million class-action lawsuit was launched on behalf of Southwestern shareholders yesterday against the company and John Paterson. It alleges they "materially misrepresented" the results of the Boka project, "caring not whether they were true or false." The suit, filed in the Ontario Superior Court by law firms Sutts Strosberg LLP and Siskinds LLP, seeks to recover $200-million in damages, and an additional $20-million in punitive damages. It was filed on behalf of Andrew Stastny, an investor who owns 4,000 shares in the mining company, which were purchased for between $6.40 and $8.39. The two firms are seeking classification for a class-action suit on behalf of all shareholders. Sutts Strosberg is also leading a class action against Bre-X, the mining firm that collapsed 10 years ago after its core samples were found to be salted. The documents cite several company press releases and securities that "purported to provide favourable drilling and other data and information relating to [Southwest's] key Boka project." "But in fact such data and information could not be relied upon by investors," the court documents allege. In the documents, Mr. Stastny alleges the actions of the company were "disgraceful, willful and motivated by economic considerations." Reached at his office in Windsor, Ont., lawyer Harvey Strosberg said he was contacted by Mr. Stastny to launch the suit. "Investors are entitled to assume that public companies will ensure that the integrity of drill core samples will not be compromised," the firm said. "Surely public mining companies have learned something about quality control from the events which occurred 10 years ago." Southwestern Close: $2.27 down 63 cents' globeinvestor.com

To: E. Charters who wrote (45349)	7/21/2007 7:27:30 PM
From: stan_hughes	Respond to of 78416

there is a series of assay results that came from drilling that look as if the decimal points were actually moved to the right when they were disclosed to the public And it won't matter who actually did it, either To use your own anecdote about the Canadian brokers being too busy to look at your mine when they have all these other great China plays on their agenda, nobody is going to give the SWG people (past or present) another dime for the next 10 years -- everything and everyone associated with this mess is now officially damaged goods It might be a shame, but that's not going to change the situation -- I know of no one who invests in junior explorers out of charity