Re: John Felderhof & Bre-X Minerals Ltd.

For Immediate Release OSC Before the Court

Toronto - The Ontario Securities Commission announced today that an Information has been laid in the Ontario Court of Justice against John Bernard Felderhof, the former Vice-Chairman of Bre-X Minerals Ltd, charging Felderhof with eight counts of violating Ontario securities law.

Four counts in the Information allege that in the period April 24, 1996 to September 10, 1996 Felderhof sold approximately 2,720,500 shares of Bre-X for approximately $83.9 million with knowledge of a material fact pertaining to rights of Bre-X in relation to the Busang properties that had not been generally disclosed (also known as "insider trading").

A further four counts in the Information allege that in the period June 20, 1996 to February 17, 1997 Felderhof authorized, permitted or acquiesced in Bre-X issuing press releases containing resource calculations for the Central and Southeast Zones of the Busang properties that in a material respect were misleading or untrue, contrary to section 122 of the Ontario Securities Act. As a strict liability offence, these charges do not require the Commission to prove whether Felderhof knew the resource calculations were misleading or untrue.

The Ontario Securities Commission investigation has been limited to breaches of Ontario securities laws. An investigation has also been conducted by the RCMP into possible violations of the Criminal Code of Canada.

Mr. Felderhof (or his counsel or agent) will be required to appear before the Ontario Court of Justice at the Old City Hall, Toronto Ontario at 9:00 a.m. on June 15, 1999 and thereafter as required by the Court.

A copy of the Information is attached to this release and is available from the Ontario Securities Commission, (416) 593-8117, 8th Floor, 20 Queen St. W., Toronto.

Reference:
Mark Conacher
Director, Corporate Relations
(416) 593-8073

 

 

APPENDIX "A" TO THE INFORMATION OF MICHAEL HUBLEY

 

JOHN BERNARD FELDERHOF:

  • On or between the 24th day of April, 1996 and the 16th day of May, 1996, at the City of Toronto and elsewhere, being a person in a special relationship with Bre-X Minerals Ltd. ("Bre-X"), a reporting issuer in the Province of Ontario listed and posted for trading on the Toronto Stock Exchange, did sell securities of Bre-X, to wit: 100,000 shares (pre-split) for $21,053,951 more or less, with knowledge of a material fact with respect to Bre-X that had not been generally disclosed contrary to ss.76(1) and 122(1)(c) of the Securities Act, R.S.O. 1990, c.S.5, as am..

     

  • On or between the 24th day of June, 1996 and the 26th day of July, 1996, at the City of Toronto and elsewhere, being a person in a special relationship with Bre-X Minerals Ltd. ("Bre-X"), a reporting issuer in the Province of Ontario listed and posted for trading on the Toronto Stock Exchange, did sell securities of Bre-X, to wit: 991,800 shares for $22,649,558 more or less, with knowledge of a material fact with respect to Bre-X that had not been generally disclosed contrary to ss.76(1) and 122(1)(c) of the Securities Act, R.S.O. 1990, c.S.5, as am..

     

  • On or between the 1st day of August, 1996 and the 16th day of August, 1996, at the City of Toronto and elsewhere, being a person in a special relationship with Bre-X Minerals Ltd. ("Bre-X"), a reporting issuer in the Province of Ontario listed and posted for trading on the Toronto Stock Exchange, did sell securities of Bre-X, to wit: 714,900 shares for $17,376,205 more or less, with knowledge of a material fact with respect to Bre-X that had not been generally disclosed contrary to ss.76(1) and 122(1)(c) of the Securities Act, R.S.O. 1990, c.S.5, as am..

     

  • On or between the 26th day of August, 1996 and the 10th day of September, 1996, at the City of Toronto and elsewhere, being a person in a special relationship with Bre-X Minerals Ltd. ("Bre-X"), a reporting issuer in the Province of Ontario listed and posted for trading on the Toronto Stock Exchange, did sell securities of Bre-X, to wit: 913,800 shares for $22,875,955 more or less, with knowledge of a material fact with respect to Bre-X that had not been generally disclosed contrary to ss.76(1) and 122(1)(c) of the Securities Act, R.S.O. 1990, c.S.5, as am..

     

  • On or about June 20, 1996, at the City of Toronto and elsewhere, being an officer and director of Bre-X Minerals Ltd. ("Bre-X"), did authorize, permit or acquiesce in Bre-X making a statement, to wit: a press release dated June 20, 1996 announcing measured, indicated and inferred resources for the Central and Southeast Zones of the Busang properties in the Province of East Kalimantan, Republic of Indonesia, totalling 39.15 million ounces of gold, which press release was required to be filed or furnished under Ontario securities law, that in a material respect and at the time and in the light of the circumstances under which it was made, was misleading or untrue or did not state a fact that was required to be stated or that was necessary to make the statement not misleading, contrary to s.122(3) of the Securities Act, R.S.O., 1990, c.S.5, as am..

     

  • On or about July 22, 1996, at the City of Toronto and elsewhere, being an officer and director of Bre-X Minerals Ltd. ("Bre-X"), did authorize, permit or acquiesce in Bre-X making a statement, to wit: a press release dated July 22, 1996 announcing measured, indicated and inferred resources for the Central and Southeast Zones of the Busang properties in the Province of East Kalimantan, Republic of Indonesia, totalling 46.92 million ounces of gold, which press release was required to be filed or furnished under Ontario securities law, that in a material respect and at the time and in the light of the circumstances under which it was made, was misleading or untrue or did not state a fact that was required to be stated or that was necessary to make the statement not misleading, contrary to s.122(3) of the Securities Act, R.S.O., 1990, c.S.5, as am..

     

  • On or about December 3, 1996, at the City of Toronto and elsewhere, being an officer and director of Bre-X Minerals Ltd. ("Bre-X"), did authorize, permit or acquiesce in Bre-X making a statement, to wit: a press release dated December 3, 1996 announcing measured, indicated and inferred resources for the Central and Southeast Zones of the Busang properties in the Province of East Kalimantan, Republic of Indonesia, totalling 57.33 million ounces of gold, which press release was required to be filed or furnished under Ontario securities law, that in a material respect and at the time and in the light of the circumstances under which it was made, was misleading or untrue or did not state a fact that was required to be stated or that was necessary to make the statement not misleading, contrary to s.122(3) of the Securities Act, R.S.O., 1990, c.S.5, as am..

     

  • On or about February 17, 1997, at the City of Toronto and elsewhere, being an officer and director of Bre-X Minerals Ltd. ("Bre-X"), did authorize, permit or acquiesce in Bre-X making a statement, to wit: a press release dated February 17, 1997 announcing measured, indicated and inferred resources for the Central and Southeast Zones of the Busang properties in the Province of East Kalimantan, Republic of Indonesia, totalling 70.95 million ounces of gold, which press release was required to be filed or furnished under Ontario securities law, that in a material respect and at the time and in the light of the circumstances under which it was made, was misleading or untrue or did not state a fact that was required to be stated or that was necessary to make the statement not misleading, contrary to s.122(3) of the Securities Act, R.S.O., 1990, c.S.5, as am..

 

 

APPENDIX "B" TO THE INFORMATION OF MICHAEL HUBLEY

 

Consent of the Commission Pursuant to section 122(7) of the Securities Act, R.S.O. 1990, c.S.5, as am.

THE ONTARIO SECURITIES COMMISSION HEREBY CONSENTS to the commencement of proceedings against JOHN BERNARD FELDERHOF in respect of the offences described in the Information of Michael Hubley attached.

DATED at Toronto this _____ day of _____________, 1999.

_______________________________________

Commissioner

THIS IS TO CERTIFY that the consent of the Commission pursuant to section 122(7) of the Securities Act, R.S.O. 1990, c.S.5, as am. as set out at Appendix B to the Information of Michael Hubley was read by me prior to my swearing the said Information against JOHN BERNARD FELDERHOF.

__________________________________________

A Justice of the Peace in and for the Province of Ontario

 

Section 24 - John Felderhof - Bre-X