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Gold/Mining/Energy : JAB International (JABI) -- Ignore unavailable to you. Want to Upgrade?

To: Charger who wrote (4195)	12/10/1998 2:26:00 PM
From: Martin Wormser	Read Replies (2) \| Respond to of 4571

Today's Sac BEE Struggling mining firm sets reverse stock split By Norman D. Williams Bee Staff Writer (Published Dec. 10, 1998) Brush Creek Mining and Development Inc., teetering on the brink of insolvency, announced a 10-for-1 reverse stock split Wednesday that will allow its shares to remain on the Nasdaq Stock Market. The move, subject to shareholder approval at a special meeting Dec. 23, would boost the value of each Brush Creek share over the $1 mark, which is the Nasdaq minimum. Exchange officials were prepared to remove the company from the market, effective Friday, if no action was taken to increase the share price. "We've been trading below a dollar a share for the last 90 days," said Larry Stockett, chief executive officer of the Grass Valley firm. "The only way to get it above that is a reverse split." Stockett, who rode into town as a business-rescuing "white knight" in November, plans to seek shareholder direction on a number of issues at the special meeting. They include proposed settlements on a number of lawsuits in which the firm is involved. Among the major issues to be put to shareholders is a proposal to increase the authorized shares of company stock from 10 million to 50 million. That would allow it to proceed with planned acquisitions of U.S. Cement in Las Vegas and McLaughlin Engineering and Mining Inc. in Temecula. Wednesday's stock split announcement is just the latest dramatic move by Brush Creek, which has recently undergone financial and managerial turmoil. The company laid off its entire work force of 30 in July and is embroiled in a dispute with Volcanic Resources, its primary investment partner. Sierra County, in October, seized the company's bank account and mining equipment because of unpaid property taxes. Stockett, who is also CEO of U.S. Cement, hopes to turn Brush Creek's fortunes around by effectively converting Brush Creek into a holding company, with the mining operation, the cement company and McLaughlin becoming subsidiaries. The tax write-offs enjoyed by Brush Creek would help boost profits at U.S. Cement and allow it to seek public investment. Stockett wants other mining operations to pay for the rights to operate at Brush Creek's mines. Stockett has been working without compensation and said he plans to continue doing so until the company has its first profitable quarter.