Shareholders seek to oust management of Seven Mile High

A shareholders’ committee representing over 50% of the issued shares of Seven Mile High Group (VSE) recently launched a public campaign to remove most of the company’s management team. Seven Mile is a 40% participant with Inco (TSE) in the exploration of the Vault gold property near Okanogan Falls, B.C. Earlier this year, the shareholders obtained a court order from the Supreme Court of British Columbia which appointed Rupert Bullock, former head of the British Columbia Securities Commission, as inspector to look into the company’s affairs.

The committee brought forward a number of allegations. The group has asked police, securities regulators and the Vancouver Stock Exchange to investigate the allegations.

After the court order was obtained, the Vancouver Stock Exchange halted trading in the company’s stock and the British Columbia Securities Commission froze the company’s bank account. Company expenses must now be approved by the commission.

The shareholders’ committee, which is still awaiting Bullock’s report, alleges that present management of Seven Mile High is engaging in “lengthy and expensive” litigation to oppose Bullock’s efforts to investigate the matters.

Two junior companies, Goldnev Resources (VSE) and Bethlehem Resources (VSE), recently suspended investigations into a possible 3-way merger with Seven Mile “pending resolution of (its) regulatory difficulties.”

As well, Inco deferred its work program at the Vault property because of a recent challenge to title of one of the claims. A ruling by the Gold Commissioner is expected shortly.