Xenolix to buy back shares

An agreed settlement in an administrative action by the Arizona Corporations Commission will require precious-metal “nanotechnology” company Xenolix Technologies (xtci-o) to buy back shares from some investors that participated in private placements between 1997 and 1999.

The commission alleged that the company, then operating under the name M.G. Natural Resources, had made unregistered offerings of capital stock at a time when it was claiming “to have a patented technology that would extract gold and precious metals from the company’s volcanic cinders on property it owned east of Flagstaff.”

For several years, M.G. and predecessor companies had claimed to be exploring for gold on properties in Arizona. Invariably these were properties where, according to the operators, gold mineralization could not be detected by conventional analytical methods.

Xenolix conceded, in a press release, that expert witnesses for the commission had disputed the company’s claims of having developed chemical methods that would extract precious metals from materials on its properties.

Several companies operating in the southwestern U.S. claim to be exploring precious metal “deposits” where standard laboratory methods detect only insignificant quantities of the same metals. Producing mining companies and securities regulators regard these claims as bogus.