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Gold/Mining/Energy : Northern Abitibi Mining (NAI-ASE) -- Ignore unavailable to you. Want to Upgrade?

To: Ed Pakstas who wrote (280)	2/24/1998 5:46:00 PM
From: Ed Pakstas	Read Replies (1) \| Respond to of 773

Insiders' stock "selling spree" cited in suitÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Golden Rule Resources Ltdÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ GNU Shares issued 26,654,081ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Feb 23 close $0.95 Tue 24 Feb 98ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Street Wire Also Hixon Gold Resources Inc (HXG) by Brent Mudry A Philadelphia class action suit contends the collapsedÿ promotionÿ ofÿ the Stenpad gold property in Ghana was merely a ploy for insiders of Hixon Gold and Golden Rule Resources insiders to dump 1.8 million of theirÿ sharesÿ at "artificiallyÿ inflatedÿ prices," reaping gross proceeds of more than $12.3 million. In a suit filed Monday in US District Court, Easternÿ Districtÿ of Pennsylvania,ÿ lawyerÿ Robertÿ Rosemanÿ claims the Stenpad promotion pushed Golden Rule shares from $1.50 in fall 1996 to an all-time highÿ ofÿ $13ÿ in springÿ 1997,ÿ whileÿ Hixonÿ sharesÿ roseÿ from $1 to $12. When the Stenpad lustre rubbed off last May, Golden Rule shares plunged to less than $3. The namedÿ defendantsÿ areÿ Goldenÿ Rule, Glen Harper, Larry Lahusen, Frederick Wynne, Jens Hansen, Robert Ingram and James Devonshire. The suit, written with a flair for the dramatic, peppers its pleadings with colourfulÿÿ language.ÿÿ Mrÿ Roseman,ÿ whoÿ professesÿ toÿ haveÿ "extensive" experience in actionsÿ involvingÿ financialÿ fraud,ÿ outlinesÿ theÿ Stenpad promotionÿ andÿ theÿ insiders'ÿ "stockÿ sellingÿ spree." The veteran lawyer claimsÿ thatÿ insidersÿ luredÿ investorsÿ withÿÿ visionsÿÿ ofÿÿ substantial high-quality gold finds, so the market would value Hixon and Golden Rule as "growth stocks. . . creating a highÿ priceÿ earningsÿ multiple."ÿ Theÿ suit notesÿ that "contrary to the upbeat and bullish reports" released by Golden Rule, two reports from theÿ Ghanianÿ mineralsÿ commissionÿ madeÿ "startling revelations"ÿ thatÿ theÿ bigÿ gold find was a bust. "Market reaction to the devastating disclosures of May 15 1997 was swift,ÿ dramaticÿ andÿ decidedly negative," states Mr Roseman. Theÿ classÿ actionÿ lawyerÿ claimsÿ thatÿ insiders,ÿ includingÿ Mrÿ Harper, concealedÿ factsÿ aboutÿ the Ghanian operations until the government report "laid such deception bare." To illustrate his case, Mr Roseman includes two handyÿ chartsÿ withÿ his suit. One plots the rise and fall of Golden Rule's stock price, compared to heavy insider selling. The other contrastsÿ Golden Rule'sÿ performanceÿ againstÿ thatÿ ofÿ theÿ Toronto Gold & Metal sub-index during the period in question. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com