Ivany denies asking for Eskay assay

Securities lawyers representing John Ivany at a hearing in front of the British Columbia Securities Commission appear to have adopted a strategy aimed at distancing Ivany from his associates, Murray Pezim and Lawrence Page. As senior management of Prime Resources (VSE), the three men are facing allegations that they failed to make proper disclosure of material information. It is also alleged that they profited from this undisclosed information, failed to carry out their duties properly as directors of public companies, and misled the Vancouver Stock Exchange on a number of issues.

“This is the most serious affair that I have ever been the subject of,” said Ivany, a lawyer and former senior executive of Noranda.

Pezim, Page and Ivany were directors and officers of Prime and Calpine Resources (now a wholly owned subsidiary) during a period in 1989 when Calpine was operating a drill program at its 50% owned Eskay Creek project north of Stewart, B.C.

Ivany’s lawyer Leon Getz responded to these allegations by referring to the opening statement presented on the opening day of the hearing by Gregory Walsh, lawyer for the province’s Superintendent of Brokers. Getz said Walsh’s statement was “full of errors, misunderstandings and significant inaccuracies.”

Specifically, Getz challenged allegations that his client used inside information to profit to the tune of $2.5 million by exercising stock options.

In his opening remarks, Getz stated that his client — “a decent, serious-minded and restrained man” — did not exercise “a single option” during the period in question. He also said his client should be judged “only for his own conduct” and not that of his associates.

In calm, measured tones, Ivany also testified that he did not ask for or receive assay results from hole 109 or from any other drill hole before they were released for public dissemination by Prime Explorations.

At the hearing it was disclosed that Prime Explorations (the manager of the work program at Eskay Creek) requested assay results from 20 samples from hole 109 on Aug. 10, the results being faxed the same day.

The remaining gold values for hole 109 were received by Prime Explorations on Aug. 14, and final values (lead, zinc, etc.) on Friday, Aug. 18. The assays for all metals were released in a press release dated the following Monday, Aug. 21, 1989.