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

To: teevee who wrote (17949)	4/8/1999 11:02:00 PM
From: Gord Bolton	Read Replies (1) \| Respond to of 26850

I am not the expert on time limits but I do know that there are time limits on civil actions and they do have to be brought forward within a reasonable length of time after a party becomes aware of the "problem" or loss as the case may be. I could site a few cases that were lost or diminished due to unreasonable delay. I would not go so far as to say they were "rats" or anything like that. It is more likely that they could not come to an agreement on a plan or course of action and just dithered away not suspecting that Winspear would enforce the point. They should have had their ABerex company up and running, transferred assets and raised money for the Snap Lake program. But you know how tough it is raising money for the resource sector right now-or at least how hard it is perceived to be. I do agree that the suit is more of a show or damage control measure at this point and it may be neccesary if the board does have liability insurance and if some of the shareholders did launch a class action. It would likely have to be shareholders other than the ones who took down the May 98 $100 million financing because those folks bought Diavik. They might have a hard time argueing that they lost out on Snap Lake. In fact the more I think about it the board might be better off without sueing Winspear because if they sue and lose then they have clearly declared their own liability. They might have been better off just saying that they didn't have the money and the board decided to accept dilution rather than saying to the world through their own documents that they were offered $50 million for 32%, turned it down and then lost 16% for the want of $4 million. They have certainly created a rats nest for themselves, there is no doubt about that.