Calgary promoter raised millions for mining project with questionable future

[Johnnny]

Calgary promoter raised millions for mining project with questionable future

Anyone remember Bre-ex?

During the past 33 years, Calgary promoter Ross H. Stanfield has raised more than $220 million from 3,765 investors to develop gold, platinum and feldspar deposits on the Gallowai Bul River property 40 kilometres southeast of Cranbrook.
Stanfield has repeatedly told investors in his privately held companies, Gallowai Metal Mining Corp. and Bul River Mineral Corp., that the property is on the verge of production, but it never happens.
Along the way, his companies have been barred, albeit temporarily, from selling shares in B.C., Alberta and Saskatchewan; his consulting geologist has been disciplined by his professional association in Alberta for preparing misleading exploration reports; and geologists at the B.C. mines ministry have repudiated the companies' assay results.
After so many years, so much money, and so many false starts, patience and loyalty is wearing thin.
A group of disgruntled shareholders has filed a minority oppression petition against Gallowai and Bul River in B.C. Supreme Court.
The petition alleges Stanfield -- who owns all the voting shares -- has been running the companies in an autocratic and secretive manner, and "has failed to live up to the reasonable expectations of non-voting shareholders" to put the mine into production.

 

[Johnnny]

this will make the news somewhere if it hasnt already

 

[Mowich]

Calgary promoter raised millions for mining project with questionable future

Anyone remember Bre-ex?

Having worked for several exploration companies as a prospector, I have seen first hand the money wasted when it should have gone in the ground. Outing companies like this is a good thing. One would have thought that after the Bre-Ex scandal companies would take the high road. Not so, too many are still getting away with recklessly spending shareholders/investors money with little or nothing to show in the end.

But then, that's just my opinion. ;-)

 

[taxslave]

And this is different than any other junior mining company how?

 

[AnnaG]

And this is different than any other junior mining company how?

Junior? It's been around since at least the 80s.

Anyway, so you can't tell the difference between a company that follows the rules and one that doesn't. Interesting.

 

[Tonington]

That's an average investment of approximately $58,500. Thirty-three years is an awful long time to wait for a return. Pretty risky investment it's turned out to be.

 

[AnnaG]

That's an average investment of approximately $58,500. Thirty-three years is an awful long time to wait for a return. Pretty risky investment it's turned out to be.

The investment is risky like a junior company, but not the activities. I bet most mining companies, junior or not, more-or-less follow the rules.
If someone can con people into investing and follow the rules while they are doing it, more power to them, I think.

 

[Kreskin]

A lot of these groups make their money on speculation, before production. Then cash in and move on. Why bother making a go at producing anything when you can make more creating hype.