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Gold/Mining/Energy : KWG Resources (KWG - T) -- Ignore unavailable to you. Want to Upgrade?

To: philip trigiani who wrote (166)	6/20/1998 12:52:00 PM
From: Walter	Read Replies (1) \| Respond to of 197

More bad news. It just shows that you can not trust Pierre Gauthier on anything. I has been BS after BS every month. But he will be OK though because for him it is just a white collar crime at worst and total incompetence at best. Saturday, June 20, 1998 KWG threatens countersuit By PAUL BAGNELL Mining Reporter The Financial Post KWG Resources Ltd. said Friday a legal action against it by a creditor is "abusive and dilatory." The Montreal-based mineral exploration junior said it may sue Financial Technology Research Corp. for "utilizing the courts and the press to put undue pressure on [KWG] in an attempt to obtain a settlement for a claim it knows is without merit." KWG and its sister company, St. GeneviŠve Resources Ltd., are operating under a court-approved plan to repay creditors after the companies sought protection under the Companies' Creditors Arrangement Act late last year. The plan calls for creditors to receive shares of KWG and St. GeneviŠve instead of the money they are owed. The company said a preliminary prospectus for the share issues will be submitted to the Quebec Securities Commission within a week. It will be another six to eight weeks before shares are issued to a trustee, it said. When creditors approved the plan on April 30, the companies predicted the shares would be issued by early June. On Wednesday, New York-based Financial Technology, which says KWG owes it $4.4 million, asked Quebec Superior Court to overturn the repayment plan. The company says KWG reneged on a deal in which Financial Technology was entitled to exercise options to purchase shares of KWG. In a press release Friday, KWG said Financial Technology did not perform the services it promised and KWG never received an invoice for the debt being claimed. It also says it told Financial Technology in 1996 it considered the claim invalid. On Friday, Financial Technology fired back with a statement vigorously denying each of KWG's claims. KWG also said Friday work at its Ametistovoe gold project in Russia, the company's only significant asset, has been halted while it looks for a new partner. A deal in which KWG, through an affiliate, agreed to exchange its 80% stake in the project with Astral Ltd. of Ireland for a 20% share of future profit has been terminated, KWG said Wednesday. Shares of KWG and St. GeneviŠve trade without daily quotation on the over-the-counter Canadian Dealing Network. BREAKING NEWS MARKET WATCH BIZ TICKERS MUTUAL FUNDS MONEY RATES BIZ SEARCH Freeport knew Bre-X 'wrong' Midland-Merrill deal near Berkshire snags General Re Anger over fishing aid programs CANOE home \| We welcome your feedback. Copyright c 1998, Canoe Limited Partnership. All rights reserved. Please click here for full copyright terms and restrictions.