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Gold/Mining/Energy : Starpoint Gold -- Ignore unavailable to you. Want to Upgrade?

To: john mcknight who wrote (2080)	1/10/1999 1:42:00 PM
From: john mcknight	Respond to of 2378

Hi All, Latest from BBC world service Regards Mr Chiluba said that all countries involved in the war would be represented, along with Congolese rebels -- although at what level they would participate is not yet clear. The summit, originally planned for the beginning of December, has been repeatedly postponed, mainly over the refusal by the Congolese President, Laurent Kabila, to meet rebel leaders face to face. Last week, Mr Kabila offered to meet rebel leaders in Kinshasa. From the newsroom of the BBC World Service

To: john mcknight who wrote (2080)	1/12/1999 12:16:00 AM
From: Henry Hooymans	Read Replies (2) \| Respond to of 2378

Starpoint, Global square off in court Starpoint Goldfields Inc STS Shares issued 10,176,910 Jan 8 close $0.05 Mon 11 Jan 99 Street Wire by Brent Mudry FORENSIC SHORT SELLING REPORT TABLED IN COURT Global Securities chairman Art Smolensky and the board of Starpoint Goldfields await an interim decision on Tuesday in a high-stakes court case based largely on credibility. After a full-day "18A" pre-trial hearing in the Supreme Court of British Columbia on Monday, Justice Pamela Kirkpatrick deferred judgment on whether to order Starpoint to pay more than $300,000 into court in favour of the Vancouver brokerage. The judge is also mulling whether Global's suit, claiming repayment of a $300,000 1996 promissory note, is inextricably intertwined with Starpoint's $30-million countersuit, which claims Mr. Smolensky's brokerage not only failed to raise $5-million in a planned financing, but Global's clients, including his wife, aggressively shorted Starpoint's stock during the same period. Starpoint lawyer Christopher Giaschi candidly told the judge that his client, represented by chief executive Harry Bristman and president Rick Ilott, cannot meet a hefty court payment order, which could let Global off the hook on the counterclaim. "It does not have the financial resources to do so," Mr. Giaschi told the court. Mr. Giaschi met with Global lawyer Shayne Strukoff during a brief break, but the two sides were unable to agree on a payment-into-court solution to present to Justice Kirkpatrick. Mr. Strukoff told the judge that if Starpoint is unable to post payment, it may not have the resources to underwrite a costly legal fight to prove its worrisome counterclaim and short selling allegations against Global and Mr. Smolensky. The court battle stems from Starpoint's attempts to finance an option on diamond concessions in Angola in 1996. In July 1996, Starpoint got an option for a 52 per cent interest in the Yetwene and Riverstone diamond concessions in Angola, and it needed financing to complete its acquisition. Mr. Smolensky was eager to handle a $5-million private placement, as Global had already served as Starpoint's fiscal agent and raised financing in two previous private placements for Starpoint. With the financing in the works, Global loaned $300,000 to Starpoint in September 1996, totally unsecured. Global was unable to complete the $5-million financing, while Starpoint lost the Angolan concessions and was unable to repay the $300,000 loan. The dispute headed to court in September 1997, when Global sued Starpoint for $336,000, including interest. In the court case, the credibility of both sides is under significant scrutiny. Starpoint claims the promissory note was a bridge loan directly related to the $5-million financing, while Global claims this is totally untrue, and the two transactions were completely unrelated. Mr. Smolensky's affidavit and sworn testimony contrast with a letter he sent to the Law Society of British Columbia, complaining about Starpoint's corporate lawyer Don Lyons, in which the brokerage head himself specifically called the $300,000 payment a "bridge loan." When confronted in discovery cross-examination, the brokerage head had a ready explanation for the letter. "The letter was solicitor-drafted and I did not catch it," stated Mr. Smolensky. In court on Monday, Mr. Giaschi argued this was evidence that the case must be heard in a full trial, not a short 18A hearing. "In my submission, Mr. Smolensky is not being truthful and this raises very serious questions regarding Mr. Smolensky's credibility," the Starpoint lawyer told the judge. During the 18A hearing, no witnesses were called for direct testimony and cross-examination, with the lawyers presenting sworn affidavits from Mr. Smolensky and Starpoint's Mr. Bristman and Mr. Ilott, and excerpts from their pre-trial discovery depositions. The main players did not have a direct opportunity to answer or refute the allegations made in court. Starpoint lawyer Mr. Giaschi also presented a forensic accounting report, completed last Thursday, which claims Global and a handful of its select clients made more than $200,000 in a short selling campaign against Starpoint during the failed financing period. Justice Kirkpatrick will render an interim decision on the $300,000 promissory note at noon Tuesday. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com