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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: J. Nelson who wrote (12991)	11/18/1998 7:30:00 PM
From: MoneyMade	Read Replies (3) \| Respond to of 119973

J. You asked me about gold...I'm gonna go one step further Take this and do with it as you like, I've just received this so it's still hot! Brush Creek eyes 'white knight' rescue By Gilbert Chan Bee Staff Writer (Published Nov. 17, 1998) A Las Vegas entrepreneur stepped in Monday as a "white knight" to resuscitate financially ailing Brush Creek Mining and Development Co. Inc. of Grass Valley. Larry Stockett, chief executive of U.S. Cement Co. in Las Vegas, said he is taking over as Brush Creek's chairman and CEO and the two companies will merge if several lawsuits against the mining company are settled. A merger would give U.S. Cement a financial boost as it tries to develop a new, less expensive way to manufacture and distribute cement nationwide. The announcement comes at the eleventh hour for Brush Creek, which was essentially broke and on the verge of folding and being delisted on the Nasdaq stock market. Brush Creek has been plagued by several lawsuits and a dispute with its primary investment partner. Moreover, Sierra County last month seized the company's bank account and mining equipment because of unpaid property taxes on its federal mining claims. Directors on Monday said that Stockett's turnaround plan is no sure-fire deal. But they added it was the only realistic proposal to reverse the mining company's fortunes. "Their plan makes considerable sense," said Ken Friedman, a Brush Creek director and CEO of a Colorado uranium mining company. "We have a very large operating loss. They are of the belief that they could very quickly generate very large profits. We're going to try to make this happen." Under the agreement, Stockett, who replaces James Chapin as chief executive, will work without pay until Brush Creek records its first quarterly after-tax profit. As an incentive, Stockett would receive 1 million shares of Brush Creek restricted stock if the price reaches $5 a share at closing for 10 straight days. Brush Creek shares closed Monday unchanged at 25 cents a share on volume of 208,500. Stockett, who also heads the IPO Network, an initial public offering information company, is shooting to resolve the funding and legal problems by Dec. 25. If that occurs, he will transfer his 51 percent ownership of his start-up cement company to Brush Creek and accept certain restricted shares of Brush Creek stock in return. In essence, Brush Creek would turn into a holding company with the mining operation, cement company and a geological consulting firm becoming subsidiaries. Financially, it means Stockett's U.S. Cement could take advantage of about $25 million in Brush Creek tax write-offs, which could boost profits of the cement operation. U.S. Cement also instantly would become part of a public company and gain access to investors. Stockett wants to work out deals with other mining companies to operate Brush Creek's mines. "There are other gold mining companies that would love to mine our gold," he said. Brush Creek controls nine mines in the Allegheny-Downieville Gold District of Northern California and has an option on the Iron Mountain Mine near Redding. In recent years, Brush Creek has lost more than $42 million while producing little results. In July, the company laid off its estimated 30 employees because of its financial dispute with corporate partner Volcanic Resources, which owned 30 percent of the mining company. Volcanic Resources stopped further investments in Brush Creek, leaving the company in limbo since the summer.