| Canadian investors poured cash into Mongolia with high hopes, dashed by Bre-X. Read how Java Gold nearly succeeded and why it eventually stumbled and vanished... | ABSTRACT Java Gold Corporation (JVAG on CDN) was created as an Ontario corporation in 1996 with financial support from International Pursuit Corporation (IPJ on Toronto Stock Exchange). Java Gold had a meteoric rise then a catastrophic collapse.
It began as a stock market ‘bubble’ to attract cash to build a portfolio of hard-rock gold licenses in Indonesia, the home of prospector Armand Beaudoin. Sensing a major opportunity, Java Gold came to Mongolia, bringing International Pursuit. Together they amassed a huge portfolio of exploration licenses, but the collapse of the gold price and 10% Sales Tax on gold burst the speculative bubble. Java Gold re-launched Barmash JSC (listed on the Mongolian Stock Exchange) as ‘the Minerals House of Mongolia’ creating a hub for other minex companies. Java Gold attempted to become the world’s biggest independent placer gold producer, narrowly failing to raise $15m for a Krupp Bucket Wheel Excavator for dry mining the Toson Terrace, and $22m for a Rohr Grab Dredge for the adjacent Toson Alluvials.
Ill-timed removal of cash by Armand Beaudoin (President and CEO) contributed to JVAG’s paralysis of NEGATIVE working capital. Serious breaches of the Canada Business Corporations Act and the Securities Act of Ontario occurred, and systematic circumventing of Mongolian regulations controlling license awards. Many News Releases are incorrect, misleading shareholders and investors. Erroneous official filings misled Canadian regulators.
When Armand Beaudoin passed away in 1999, JVAG was left with NO directors and NO officers, debts of up to $1m, no cash, but a 40% stake in the Toson Alluvial Gold License worth about $4m.
Recommendations are made for changes in Mongolian and Canadian laws and regulations, and the paper is intended to assist shareholders in the revival of JVAG. DOWNLOAD ARTICLE
GO TO NEXT ARTICLE
|
