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Gold/Mining/Energy : BRO-X MINERALS (C.BXO) -- Ignore unavailable to you. Want to Upgrade?

To: alan holman who wrote (280)	12/31/1998 11:04:00 AM
From: alan holman	Respond to of 363

Message from Rod Steel: Wednesday, December 30, 1998 Investor group aims to keep Bresea alive With $25-million in bank, group says Bresea not insolvent By CAROL HOWES The Financial Post CALGARY -- A small group of investors in embattled Bresea Resources Ltd. is attempting to keep the company alive. Rod Steel, who claims to represent about 75 investors with more than 1.5 million shares, said yesterday the group has no intention of allowing the affiliate of Bre-X Minerals Ltd. to slip quietly into the history books. Bre-X went bankrupt last year after its Indonesian gold find was declared a fraud. "We think Bresea should keep operating because it's the only way we can get a fair return on our investment," said Mr. Steel, who lives in Portland, Ore. Mr. Steel said he and the rest of the group are counting on the appointment of a shareholders' board to lead the effort to turn Bresea into a viable company. Two weeks ago, a Court of Queen's Bench of Alberta approved the establishment of a five-member advisory board and gave lawyers the go-ahead to explore a settlement with shareholders. Mr. Steel said he hopes a representative will be chosen from his group so their concerns will be heard. The board will be selected over the next two months to assist the court-appointed monitor in restructuring Bresea. Calgary-based Bresea is under court protection from creditors. It has 65 million shares outstanding. Calgary lawyer Clint Docken said investors in Bresea could see repayment of up to $30-million by next spring in what would be the first payout in the $6-billion gold hoax. Bresea has about $25-million in cash and another $5-million in assets that includes the building that once housed Bre-X. Mr. Steel said while monitor Pricewaterhouse Coopers Inc. is wrapping up a number of outstanding matters relating to Bresea, the company remains solvent. "I think they've got a long way to go," said Mr. Steel, who owns 22,000 shares. "That money can't be distributed to shareholders unless the court agrees it [the company] is insolvent. It's hard to call a company with $25-million in the bank insolvent." Bresea was the first company David Walsh formed in the early 1980s. Bresea owned 25% of Bre-X, which owned 18% of Bresea. Mr. Steel said some members of his group first made a request in late 1997 to have a new board of directors appointed to Bresea. The group offered a slate of individuals from the mining industry, but the monitor turned it down. The group has not hired a lawyer, he said, and is trying to work through the system. ------ Previous

To: alan holman who wrote (280)	2/2/1999 9:40:00 AM
From: alan holman	Read Replies (1) \| Respond to of 363

>>>>>>> Bresea and Bro-X Posting <<<<<<<<< The following are excerpts from a Notice of Motion and related Affidavit filed with the Alberta Court of Queen's Bench on January 18th, 1999 and, I believe, subsequently approved on January 20th, 1999. START OF EXCERPT ONE <<< "TAKE NOTICE that an application will be made on behalf of PricewaterhouseCoopers Inc.,- - - for an Order: 1. authorizing the Interim Receiver to enter into an agreement with Bro-X Minerals Ltd. involving the redemption of Bresea Resources Ltd.'s preferred shares in Bro-X Minerals Ltd. or, in the alternative, the winding up of Bro-X Minerals Ltd., such agreement to include substantially similar terms as outlined in the Letter of Intent attached to the Affidavit of Kurt P. Bonokoski; - - -" >>> END OF EXCERPT ONE - START OF EXCERPT TWO <<< "AFFIDAVIT I, KURT P. BONOKOSKI, - - - SAY AS FOLLOWS: - - - 7. Since October 1998, negotiations with Bro-X have been ongoing regarding Bresea's right to retract its preferred shares in Bro-X, and on January 18, 1999 a Letter of Intent was entered into between Bresea and Bro-X. In general terms, the agreement contemplates that Bro-X will have until April 30, 1999 to conduct a rights offering to its existing common shareholders in order to raise funds which will allow Bro-X to enter into a merger or joint venture with another company. If the Bro-X rights offering is successful, Bro-X will redeem 750,000 preferred shares held by Bresea, at $1 per share, and the remaining preferred shares held by Bresea will be converted into an equal number of common shares in Bro-X. If the rights offering does not occur or is unsuccessful, Bro-X agrees that it will not object to or impede a winding-up application undertaken by Bresea, through the Interim Receiver, through which Bresea will exercise its rights on the preferred shares. - - -" >>> END OF EXCERPTS In my opinion, if there are any Bro-X shareholders out there that wish to recoup their losses on Bro-X shares by having Bro-X become a viable company again, they should actively get involved by contacting Thomas P. Devlin the Acting Treasurer and Corporate Secretary for Bro-X Minerals Ltd. (April 30th is not very far away). Regards, Rod Steel Secretary of the Executive Committee, BSR Group of Shareholders ====================================================================== NOTE: I Al Holman try my best to keep myself and anyone interested on updates about the current proceedings and/or updates on BSR/BXO/BXM.==