Alberta refuses to lift Shabu cease trading order

After a 3-day hearing in Calgary, the ASC has also lifted the trading privileges of two former Shabu directors Lawrence Wagar and David Hermiston.

The hearing was called in response to an attempt by Shabu to determine under what conditions the ASC would lift a cease trading order that has been in effect since April 30, 1987.

The cease trading order was issued after drill results from an exploration property in northwestern Ontario drove the price of Shabu shares up to $12.75 from 35 cents in just eight weeks.

More than two years later, the RCMP is still conducting its own investigatio n into the affairs of the company which is attempting to amalgamate with junior explorer Pundata Gold Corp. (ASE) of Kamloops, B.C.

According to ASC lawyer Robert Abells, allegations against the former directors included misrepresentations of the value of the company’s claims and failure to file insider trading reports.

However, the cease trading order is only one of the difficulties facing Pundata director Ed Zederayko, who plans to become president of the amalgamated company.

Another problem is the name under which Shabu will operate if an amalgamation with Pundata Gold Mines receives regulatory approval.

In an attempt to disassociate the company from its recent past, Zederayko decided that Shabu should change its name to Canadian Eagle Exploration. Unfortunately a British Columbia company is also trading under the same name.

“Frustrated is a mild word for how we feel at the moment,” said Zederayko, who is hoping to re- evaluate Shabu’s inactive properties before looking for opportunities in the oil and gas sector.

Of the directors who ran the company before a cease trading order was placed on the company’s shares back in April 1987, only Calgary lawyer Wagar will remain if and when the shares are permitted to trade again.

He is forbidden from trading shares in Alberta until August 19 while Hermiston’s trading privileges have been lifted until further notice from the ASC.

]]>