posted September 18, 2004 00:14            

quote:

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every share I can

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posted September 18, 2004 01:11            

quote:

---

NOTE to wally sometimes you resemble those nasty retorts. you bring a lot of knowledge to this board but use it stupidly. seems to me your intelligence far exceeds your your ability to put it to good use.

---

posted September 18, 2004 09:50            

He reports his findings, others use it.

It began long ago with Wallace taking the position CMKX is a scam. A stock to be traded, not held. He was attacked personally for his views. His knowledge, skill, ability, to to find negative information about CMKX makes no difference now. Labeled a basher, do you really think he is a paid basher? I believe he is a guy that was on the wrong side of most people's hopes here, and was assaulted personally, and defended himself. The whole situation evolved into personal bullcrap. Makes 0 differenc now what information is brought to this board because people will see it as being stupid or wise, based on their analysis of it. It will be stupid if it goes against the popular opinion and wise if it doesn't.

quote:
--------------------------------------------------------------------------------
NOTE to wally sometimes you resemble those nasty retorts. you bring a lot of knowledge to this board but use it stupidly. seems to me your intelligence far exceeds your your ability to put it to good use.
--------------------------------------------------------------------------------

I wish I'd have said that. Sums up my feelings exactly.

posted September 18, 2004 10:02            

"It's the weekend, good time for RUMORS. Here's one I actually heard first hand today on Paltalk. Oldepro is a trusted poster there, not a wild-eyed crazy. He speaks to Melvin frequently, and I don't think would blow that relationship, so I put a lot of trust into this one. At least that Melvin truly said it to oldepro."

"Yes, Melvin, I'm buying every share I can."
"Yes, Melvin, I'm retiring every share I can."

Now not even the most zealous stock holder can put much store in this. Talk about open ended. Buying every share I can, that could be as little as none, it can be said, well I said "can", and for a million, (excuses), reasons, the amount was 0. Same with he retiring.

..........but Melvin said it!
Would anyone believe this guy by now?
Mt. St. Helens
There is not 400B O/S, (right there is more than that)
Sample reports will be out in a PR next week, (said over a month ago)
I wish I could tell you what I am looking at on my desk, (byrd could do that justice with his twisted humor)

posted September 18, 2004 10:08            

I recieved a letter from my brokerage this week stating that im going to recieve restricted CIM shares.

it reads as follow

Corporate Action Notice
September 9 2004

Security Held: CMKX Diamonds Inc.
CUSIP: XXXXXXXXXX ( number edit out for security)
Corporate Action Event: Stock Distributtion
Record Date August 31 2004
Payable Date October 1 2004

TERMS AND CONDITIONS

We have recieved notification the the company has declaired a stock distribution, which is effected by the issuance to shareholders as of record date, 0.0256 of a restricted share of Casavant International Mining for each common share of CMKX Diamonds Inc. held, The status of fractional shares has yet to be determined.

TD Waterhouse.

posted September 18, 2004 10:20            

May be they are retiring shares, may be the O/S will be less than 400B when its announced. But they are not going to announce until 2010

Good luck everyone..

quote:

---

Originally posted by will:

..........but Melvin said it!
Would anyone believe this guy by now?
Mt. St. Helens
There is not 400B O/S, (right there is more than that)
Sample reports will be out in a PR next week, (said over a month ago)
I wish I could tell you what I am looking at on my desk, (byrd could do that justice with his twisted humor)

Nope! Not even the most wild eyed CMKX zombie could put any faith in this POS's lies.

---

posted September 18, 2004 10:25            

quote:

---

Originally posted by bill1352:
since it is the weekend lets see what the odds are on getting the ucad shares by friday. as the 24th is six days away. ameritrade told me 3 times the date was not set in stone. so who thinks the date will be changed?

i vote yes it will be changed and no word from cmkx

---

posted September 18, 2004 11:11            

quote:

---

Originally posted by bigeezee:
Time to come to the surface. I've been lurkin' here for about a month (maybe a little less. my sense of time has been distorted by the wait for PR and the like.) Some times I find it difficult to maintain attention to some of the lengthy theories I have seen posted here. Some make sense to me, but others are difficult to understand or are not very credible due to their conjectured foundation. I would like to share my theory.
There are three guys where I work that are about 90M long @ .0001 in CMKX. These guys could fall in a barrel of s__t and come out smelling like a rose. It un-nerves me sometimes at their blind luck. Thus I feel comfortable with my 1.5M.
I know this theory is not at all financially based, but I think it is as good as any.

---

posted September 18, 2004 11:23            

quote:

---

Originally posted by VNGNTN1:
Is this a reasonble thing to ask a company to do in light of current activity? I don't see how it could affect any legal things. Might alert compitition, that's why ask for only documents at drill site. What does this say if not answered ?
= = = = = = =
[QUOTE]Originally posted by VNGNTN1:
[B]DW
The filings @ registars office are current to about 3 days.
Drilling permits have been granted, in whose name ?
Maybe this is something we could reactivate and get this small answer?
- - - -
JUST eMAILED MELVIN
Would it be possible to scan & post the claim & permit to website where current drilling is being done ?
VAN
= = = = = = = =
DAY 1-No responce might be away from ofice?
DAY 2-No responce< but had time for Paltalk

---

posted September 18, 2004 12:22            

quote:

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This work included a high resolution aeromagnetic survey on nine separate blocks of ground comprising some 60,000 acres in the fall of 2000, and a detailed gravity survey on the Smeaton project, which occurs north of the Fort a la Corne kimberlites and along the same northwest structural trend as the Snowden kimberlite cluster. The latter was optioned by Shane Resources Ltd. and drilled in December 2000. Analytical results are pending

---

Dont hold your breathe for results from us.

posted September 18, 2004 14:24            

CMKX: IS .25-.60 COMING SOON & WHY by houstontex1110

By: houstontex1110
16 Sep 2004, 01:27 AM EDT
Msg. 82045 of 82229
Jump to msg. #
CECIL RHODES, CRITICAL MASS, SGGM, AND HIGHER EXCHANGE

I feel everyone will gain valuable insight into this life changing company of ours by reviewing the past...a short glimpse into the history of South African diamond mining. Bear with me, I will endeavor to connect the 4 topics in the title of this post so that a clearer picture of CMMK emerges.

The following quotes are taken from, Gemstones, Time-Life Books, 1983:
CECIL RHODES

"The two brothers who owned the farm were happier with their luck, but for different reasons. Staitlaced Boers, descendants of the early Dutch settlers of South Africa, they had no interest in prospecting and were overwhelmed by the rush of prospectors who swarmed in from nearby diggings, tearing up the land in a frantic search for diamonds. To make the best of a hopeless situation, the brothers sold the farm (which they had purchased for 50 pounds 11 years earlier) to a mining syndicate for 6,300 pounds, and moved on in search of peace and quiet. In so doing, Johannes and Diedrich de Beers unwittingly gave up a pair of fabulously rich diamond deposits, one of which would become the site of the illustrious Kimberley mine. DO NOT REPEAT THEIR MISTAKE BY SUPPOSING THAT 126 TIMES YOUR INVESTMENT IS A GREAT RETURN, and it is time to move on. History repeats itself. You know why? Every generation commits the prior generation's follies.

Early miners around Kimberley found their stones in "yellow ground," weathered rock of a type later named kimberlite. When they reached the bottom of the soft yellow ground and struck the "blue ground" that lay underneath, many miners thought their claims had petered out. But Rhodes, having consulted the few geologists in the area, suspected that the blue ground was very likely as rich in diamonds as the yellow.

If you were Urban Casavant, wouldn't you have studied the life of Cecil Rhodes inasmuch as he was the original great diamond prospector, and richly successful. Perhaps you could learn a few things from that shrewd Rhodes. Urban noticed the 2 brothers overlooked what they truly possessed, and sold out. (Same as modern day Debeers in Canada giving up their nearly 2 million acres of claims.)

Cecil Rhodes also made use of the best geological expertise he could locate. Just as Urban is using the most sophisticated magnetic surveys which endowed him with the knowledge of the immense value of those 2 million acres.

As events would soon confirm and geologists would soon understand, he was right as was UC. The blue ground was simply hard kimberlite that had not yet been broken down or discolored due to weathering. Worried or bankrupt claim holders were giving up on all sides, but Rhodes, undaunted by the low diamond prices and the unproven value of the blue ground, began buying up claims, as quickly as he could scape together the money. He organized his growing holdings into a joint stock company by naming it the De Beers Mining Company, Limited. Gee, who repeated this process?

Rhodes status in Kimberley was growing. He had a way of breaking his long silences with sudden passionate monologues that seized the attention of everyone within earshot. He once startled a group of miners by shouting, "You think I am keen about money. I assure you I wouldn't care a d**n if I lost all I have tomorrow. It's the game I like." Umm, I distinctly recall UC saying that discovering another set of valuable claims is real excitement. UC loves the hunt for the next set of claims or the next mining company to buy out or to exchange shares. Wow, with a trillion dollar critical mass valuation, no telling how many deals are standing in the wing just as you read this.

Rhodes showed little interest in the Rand(South African gold fields) at first and had to be goaded by his associates into buying gold claims. Gold simply did not have the same appeal for him as diamonds. Although eventually he came to be one of the biggest mine owners and, ironically, made a great deal more money from gold than he ever did from diamonds. I bet that the book written about UC, and his strategic moves will not point out how he overlooked gold's eventual rise to $1,000 per ounce. He is demonstrating that gold projects have a definite place in his grand design.

Just as Rhodes created an empire of diamonds, originating in Africa, UC will create the new empire of diamonds, originating in Canada. I can already hear the criticism being hurled at me. Have you ever noticed that people see the top dog in any industry as sort of invulnerable? As human beings, we see structures, firms, and even people as enduring forever. What a fallacy. Everything, including the Rock of Gibralter will ultimately disappear. Review the major corporations which once were a proud member of the Dow, and no longer even exist. Debeer's corporate life cycle in now in the downswing and as CMKM's trillion dollar valuation is established, they will no longer be viewed as THE Diamond Company.

CRITICAL MASS AND SGGM

For an atomic blast to occur, the heavy hydrogen must exist in sufficient quantity for the chain reaction to occur. Urban's plan as quoted in a previous press release, is for some sort of amalgamation of mining companies due to the fragmented state of the mining industry. Well, that is a fine goal, and any competent business man understands economies of scale and so on, but why is this goal apparently, rarely accomplished? IMO, it's because no one firm has sufficient mineral wealth to attract a wide spectrum of mining interests to achieve a truly efficient conglomeration. CMKM in assembling IMO, a trillion dollar plus valuation, has packaged a critical mass. In short, they can give up 25% of their claims in deal making and as the saying goes, not sell the family farm. CMKM will have left over, plenty of mineral interests to not lose their competitive dominance in the future diamond industry. Importantly, from the perspective of their suitors, the diamond mining is widely held as the ace of spades in the industry. Why? The return on investment is just about as good as it gets, and the mines can endure for decades.

IMO, this high return on investment helps esplain the basis for these various companies joining our growing family. The Blusson brothers are known throughout the mining industry and could have naturally struck alternative deals. Why CMKM? For one thing, the brother with a PHd. specializes in diamonds, and reviewed the entire range of firms in the area. Obviously CMKM stands out at The future Diamond Company in Canada. And notice how the market has reacted to SGGM. Let's break it down in terms of numbers. Our 250 billion shares in SGGM at .50pps is hovering around $125 billion dollars. If you take 5% of 1.9 million acres, that works out to 95,000 acres valued at $125 billion. Debeers' 58,000 acres is valued at upto $80 billion. If you divide 58 into 80, and 95 into 125, the values are respectively, 1.4 and 1.31. Is the market believing that the upper Debeers valuation is justified? Let's see if SGGM rises just a little over 5o cents, striking a resistance level, and then reverses. Markets have a tendency to move upto the next resistance level and tests it. At the resistence price, some bulls lose faith, and bears begin to short. Then, which ever group with the greatest combination of funding and faith win out. I bet the resistance holds, and SGGM will at least not bypass 60cents,unless a forthcoming PR reveals new claims deposited into the SGGM shell. Have you ever seen a shell skyrocket as fast as SGGM?

I realize that a minority of posters will leap to the conclusion that SGGM is way overvalued. Why? Their reasoning is that if 5% of our claims are worth 125 billion, then logic dictates that 100% of CMKM is worth a ridiculoud 2.5 trillion. My counter argument is that you can not have it both ways. If one agrees with Debeers that their 58,000 acres is genuinely worth $80 billion, then consistency demands a CMKM valuation of 2.5 trillion. Unless of course one presupposes our land is inferior to Debeers on an acre by acre basis. No one can answer that with certainty, but based on our magnetic survey which revealed oreo size kimberlites and hundreds of anomalies, you are hard pressed to prove our inferiority. These posters must then attack Debeers $80 billion valuation as being excessive.

Besides, right next door in Canada, the oil sands are valued at least $7 trillion. Massive mineral deposits are worth trillions, and all evidence so far indicates CMKM with stunning vision locked up this regional mineral deposit.

AND THIS....
http://ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=82045

BOOK VALUE AND HIGHER EXCHANGE

Are we to receive the SGGM's 250 billion shares as a dividend? My prediction is NO!!!! The simplest accounting equation is: Assets equals Liabilities plus Equity. That line says it all. Has anyone out there figured it out?

IMO, UC and Glenn figured the shares in SGGM would soar. How come? Have you noticed that UCAD shares have not experienced the same price explosion? IMO the market sees UCAD and CMKM as too intertwined to rely upon the exchange rate and cash payment. On top of that, Randel Williams lacks the fame and credibility of the Blusson brothers, especially the award winning PHd. brother. Once struck, the market judged that deal as reflecting a solid endorcement,and an arms length transaction. Next, the market went to work deciding how much the 5% undivided interest in CMKM is worth. The only standard available is the Debeers valuation.

At this point, it is irrelevant whether the market has over valued SGGM. The market has spoken and based upon generally accepted accounting principles, CMKM owns a stock investment valued at approximately $125 billion. Review the following: $125 billion = zero liabilities + equity. We may have several million in current liabilities, but also possess millions in cash which likely wipes out the liabilities. CMKM is left with an equity value of $125 billion. I know, what about our lands valuation? The exchanges, SEC, and generallly accepted accounting principles will readily accept the SGGM's pps, but question CMKM's valuation of our land. In the mining industry, proven ore tonnage rated at either grams or ounces per ton is established by literally hundreds of drill cores. That will take years of drilling.

Next, you take 500 billion outstanding shares and divide that by $125 billion equity, this produces a book value of .25 per share. Notice I am ignoring the additional 300 billion OS. Why? Whatever UC and Glenn have planned, the resulting effect on our company's value will be favorable. Perhaps another share exchange with another mining concern? Or maybe the shares will be used for a ratio exchange with UCAD or whoever, eventually cancelling out.

At any rate, once we step up to a higher exchange, and the market detects a book value of at least .10pps and we are trading at .0004, what do you think will happen? The pps will soar. What is currently preventing that rise? The big money, the experienced money... the smart money is waiting to see the financials, the share structure, and off that trashy pink sheet! Plus, shorty is still holding us down whether in cooperation with UC and Glen or not.

Once we hit the higher exchange, and the book value is calculated as at least 250 times of share value, the pps will explode upto at least book value. If the book value per the balance sheet is at least .25pps, the market will soar past that level reflecting a discounted valuation of the rest of CMKM's land. Perhaps double of BK? There you have it....50cents or 60cents pps. Am I 100% sure, this is how it will play out? Would I donate my right arm to medical science if I am wrong? No, not that sure.

AN OVERVIEW OF CMKM

Urban Casavant perhaps coincidentally copied many of Cecil Rhodes actions and strategies. And I feel that years ago as he and his family were stealthily staking the claims, and hiding their ownership, UC looked back at the former diamond empire builder with respect and excitement. Could he grab all these claims before Debeers figured out their mistake? He must have spent many nights tossing and turning.

Finally, we have heard over the past few months about the valuation of our land. The plan all along was to have the market help evaluate our claims through an exchange of mineral rights for the shares in a high profile company which was not being held down by shorty. High profile? The Blusson brothers are high profile and I bet there were hundreds of potential investors just waiting to see the next move by the brothers. As a matter of fact, I am also eagerly awaiting their next move. You want to bet they bring on line additional investments and perhaps before CMKM is listed on a higher exchange. If so, their pps will likely further rise, and our book value just might be .50pps. Folks imo, 50cents per share is right around the corner due to SGGM! And UC shared his prediction at the races that CMKM would be at least 50 or 60 cents without factoring in the short shares.

The bottom line is that the market place will take care of shorty. I repeatedly read posts stating that we had a volume of 9 billion shares today, and did not move! Of course shorty is part of the problem. However, one should not focus on the volume but the $volume, and most days our volume is only a few million attempting to move perhaps a $200 million market capitalization. That simply on average is insufficient $volume. The day CMKM opens up on the bulletin board IMO, and $volume is $20million or more, day after day, shorty will be swamped. Hey, if I had $100 million to invest, which I believe I will after CMKM fulfills its destiny, I would buy 10 million dollars of CMKM without a blink. Powerful money will cause this stock to soar. As the outrageously undervalued share price is made known, the mining newsletters will sound the alarm, and the multimillionaires will be buying billions of shares apiece.

In conclusion, the market just needs to know the right numbers, and as a normal consequence, one of the market truisms will materialize...an extremely undervalued security eventually is properly valued relative to similar securities.

P.S. "Empire builder and master of the diamond cartel, Cecil Rhodes is portrayed as a colossus standing astride Africa by Punch in 1892, at the peak of his power. "The vastness of his frame," wrote one historian, "was matched by the breadth of his vision." Urban Casavant seems determined to equal or exceed the achievements of Cecil Rhodes.

posted September 18, 2004 21:15            

Upside previously wrote:
This thread is a mess. I hope you guys are enjoying yourselves. Here's an idea, talk about the stock or nothing at all. Kinda radical though, huh?

He also wrote:
It's to the point where any comment or opinion, positive or negative, is met with a personal attack. Just not worth the time anymore.

He also wrote (reference was to Wallace)(edited):
You have a knack of irritating people…

Wallace responded:
Up
Yep - and you irritate absolutely no one!

Upside wrote:
If I do, it's consequential due to my beliefs regarding CMKX. You on the other hand sure seem to have an agenda. You are here to irritate people and to your credit, you do a good job of it.

Upside also wrote (speaking of JBCak, byrdturd, blueeyedtraderboy…all the same person):
"He had a few offensive posts the other day (they we're funny though)...

Wallace responded:
They weren't the least bit funny! As a matter of fact, they were "gross and vile" as usual and as others noted. Upside does have an interesting sense of humor.

Upside wrote:
Oh sure they were. The fact that they were directed at you made them even funnier.

Today, Upside also wrote in response to rivercity’s personal attack another attack:
rivercity's post:
NOTE to wally sometimes you resemble those nasty retorts. you bring a lot of knowledge to this board but use it stupidly. seems to me your intelligence far exceeds your your ability to put it to good use.
Upside wrote:
I wish I'd have said that. Sums up my feelings exactly.
------------------------------------------------------------------------------------------
Take note of Upside’s above two comments, first, “talk about the stock or nothing at all” and the other about any comment being met with personal attacks.

I have tried to avoid responding in kind, however, today Upside made another unseemly and downright rude comment.

Since when has football been “talk about stock or nothing at all”?

Since when did Upside get a permit to make “personal attacks”? If you look back, I did not respond in kind.

Since when with all his comments and statements above, did he earn liberties to irritate others with statements that have nothing whatsoever to do with his “beliefs regarding CMKX” or “about stock”?

And he has the brass b*lls to suggest someone else is a Dr Jekyl and Mr Hyde? BS!!! The above facts do not lie with reference to Upside. He is more Mr Hyde than Dr Jekyl.

This is what some of you posters respect?
Just a lot of digs, jabs, slurs and offensive remarks and innuendos?

[This message has been edited by Wallace#1 (edited September 18, 2004).]

posted September 18, 2004 21:51            

Upside hasn't called CMKX a 'cult'

Upside hasn't said all here wasn't even good enough to wipe our noses with your used tolit paper.

Upside hasn't said CMKX is a ship of fools.

All of witch (and alot left out) you have said.

posted September 18, 2004 22:00            

Upside hasn't said all here wasn't even good enough to wipe our noses with your used tolit paper.
Upside hasn't said CMKX is a ship of fools.

He has expressed his concerns but never because of personal vedettas.
---------------------------------------------
Suggest you pull up that old post about the toilet paper and you will likely find I did not refer to "all here", probably only certain ones, such as JBCak because of his gross and vile posts.

I do not recall saying CMKX is "a ship of fools", but it certainly makes a nice fitting shoe for folks here to put on.

Do not kid yourself about his personal vendetta. For some unknown reason, he has been directing it at me. I put up with it long enough!! NO MORE!!!

PS: And your "killing spree" comment is way off base. You people need to open your eyes to reality. Look at where CMKX is now headed. Look at all the reasons why!!

I now have more important things to do.
Good night.

[

posted September 18, 2004 23:51            

=======================================

Now, Wouldn't that be a nice change!?! I can just imagine DMW realizing that there are more important things in life to do than bash a stock trading at these levels! That would definitely be a first for him! Next thing you know Glass and Willie will concede that they really don't KNOW anything more than the other posters here on this board concerning this stock....Nah, that will never happen!!! That would leave them too much free time to pursue interests outside of CMKX...We all know how profitable it is to spend 24/7 on a BB for a stock you think is a joke!

Sorry folks, I just can't get enough of these jokers! I'll never claim to be any kind of trading wizard, but I feel that I can read into the intentions of the maroons that persistently post negativity on the board without backing it up with facts...

posted September 18, 2004 23:54            

bluediamonds
Global Moderator

member is offline

Gender:
Posts: 1254
Dr Diamond's CMKX MP3 (2+ hours on CMKX!)
« Thread started on: Today at 12:00am »

--------------------------------------------------------------------------------
Dr Diamond's CMKX MP3 (2+ hours on CMKX!)

Dr Diamonds thoughts on CMKX from Sept. 14, 2004 are now available online in MP3 format at:
http://www.bigskysoftware.net/CMKX/CMKX-9-14-04.mp3

This is a 15.9 MB MP3 file (of over two hours) so you may have to wait for 1-20+ minutes for the download (depending on the speed on your modem). Canuck said it popped right up for him, but my system was slower.

This file is well worth the wait, and it confirmed my opinion that Dr. Diamonds is one of the best (if not the best) DDers on CMKX.

BTW, even if you get a "The page cannot be found" type message just keep waiting as the file will download in time and start playing. At least it did for me.

You can also try right clicking the MP3 URL above and hitting "Save Target As" and this MP3 file will download right on to your hard drive -- so that you may listen to it whenever you want and as many times as you desire (or send it to others in an email).

The sound quality gets betters the longer you listen into the file, as Dr. D began to speak slower and this improved the connection and audio. The last part of the MP3 contains some of the best information, so this worked out quite well.

Dr Diamond also asked that this disclaimer be included wherever this file is posted:

"This is Dr.Diamonds opinion and is not to be taken as professional trading advice. Dr. Diamond is not a paid professional financial adviser and security decisions should not be made off of this information. Dr.Diamond recommends that no one invest money at any time in any security that they are not fully prepared to accept as a 100% loss especially in the Pink Sheets market."

Feel free to post a link to this message on other boards so other people can hear this very useful useful audio file. This link to this page is:
http://cmkxdiamond.********s32.com/index.cgi?board=general&action=display&num=10954836 00

And thanks to Canuck for hosting this file!

Enjoy!

posted September 19, 2004 00:49            

quote:

---

Originally posted by glassman:
grasshopper, until there ARE daimonds, and i mean a LOT diamonds, this stock is nothing more than UC selling tickets to a show that may or may not actually have an opening night.....
anybody who says anything different is, to use your words, a MORON. at 483+ billion shares, you have to ignore a lot of DD to convince yourself this is a BUY......

---

Actually, most of the DD on this stock points to the possibility that even if there are 483+ billion shares outstanding, this is still a great play at .0003 per share. I would love to see you post any FACTS that state otherwise. The existence of diamonds (and lots of them) is a foregone conclusion to most investors in this stock. That is not something that can be proved or disproved at this point. I'd say at .0003, its worth the risk. We are playing in the sub-penny world after all. If you can't handle the risk and uncertainty involved with a stock trading at .0003, then move on! I'm sure companies like Microsoft and WalMart can provide you with the reassurance you need to comfortably invest in a stock....

posted September 19, 2004 05:04            

[This message has been edited by Royals (edited September 19, 2004).]

posted September 19, 2004 09:27            

"
Detwin nails it again. those with slow fingers and PC will be left in the dust. he doesn't
give any target pps. will it even be 0.001 ? plenty of stocks for such returns.
who knows. be alert and watch the stock every single day. now there's rumours of something black found over there, lol, oil ? oil in Canada is very expensive to extract (10-12 dollars per barrel vs 2 in Saudi arabia). ONLY MARGE HOLDERS (100Millions+ ) and FAST TRADERS will succeed here, imho

http://cmkxdiamond.********s32.com/index.cgi?board=general&action=display&num=10955974 15
"
wow how annoying it chops up the url??

anyway enjoy as its a pretty good read:
By: detwin 19 Sep 2004, 03:06 AM EDT
Msg. 83099 of 83099
Jump to msg. #
CMKX-Shore GOLD-Debeers and the FALC POTENTIAL.

Lets try to keep things in perspective.

Debeers/Kensington have spent millions on an exploration program that has included some mini bulk and bulk sampling. They have recently announced more funding that will allow them to proceed with a more advance bulk sampling project. The FALC region is WELL KNOWN for its LARGE KIMBERLITE PIPES which translates into BILLIONS OF TONNAGE. In a word again "POTENTIAL", still NOT YET "ECONOMICAL".

NOW, no matter what any TDEM or AIRBORNE SURVEY RECORDS, ACTUAL DRILLING MUST BE DONE in order to evaluate the SAMPLES, CALCULATE THE GRADE and VALUATE THE DIAMONDS. At this point in time DEBEERS is still years away from any FEASIBILITY STUDY (if any). In a previous sample retrieved from 140/41, they recovered 155 carats worth a value of $6900 USD or $45 USD/carat. Not very good results at all.

Here is the DD from Will Purcell.

"Still, there is no certainty that Star's diamonds will come close to that mark however, as appraisals of diamonds from the nearby No. 140/141 pipe by De Beers Canada Corp. have not yielded a particularly high value. Over the past few years, about 155 carats of diamonds were priced at about $6,900 (U.S.), or about $45 (U.S.) per carat."

Now in all fairness to Debeers, 155 carats is a very small batch from a sample. They recently completed a computer model which estimated $146 per carat CDN, equivalent to approx $110 USD. (keep this number in mind for later reference).

AGAIN those are COMPUTER GENERATED ESTIMATES SO UNTIL DEBEERS PULLS THE ACTUAL DIAMONDS OUT OF THE GROUND and APPRAISES them, the valuation is still in question. The only substantiated value we have is the $45/carat figure. BUT we can agree that, as more samples are retrieved and processed the valuations will assuredly be higher. They wouldn't have spent additional funds if they didn't believe that there was still "POTENTIAL".

Before we move onto Shore GOLD we can conclude that Debeers believes in the "POTENTIAL" but are years away from any "PRODUCTION DECISION" and or "FEASIBILITY STUDY". Therefore its safe to assume that for the short term, Debeers will not have any impact on the region.

Now let's move onto SHORE GOLD which is currently in an advanced bulk sampling PROJECT. Shore began drilling the region in 95 and to date have completed the most extensive work at FALC. Taken from the SHORE GOLD web site.

"The Star Diamond Project contains a bulk tonnage diamond-bearing kimberlite 100% owned by Shore Gold Inc. The geophysical signature and early stage drilling have indicated a kimberlite body in the 500 million tonne range. Shore is currently undertaking a 25,000 tonne bulk sample to better determine carat values."

As of Friday, September 17 2004, Shore gold has retrieved and processed 12124 tonnes of kimberlite.
All the samples have been evaluated and the results have been RELEASED to the public. The remaining 12876 tonnes should be completed before the beginning of December, once the entire batch has been verified it will be forwarded to an independent appraiser for a FULL DIAMOND VALUATION (due around Christmas).

Earlier I was discussing the valuation of diamonds from FALC and THE ONLY PUBLICLY AVAILABLE INFORMATION is:

$45 USD/carat (Debeers 155 carats) - I concluded that in all practical purposes this number is way too low.

$110 USD/carat (Debeers computer generated model/estimates for their 140/41 pipe)

$100 USD/carat (I will include this figure as "INDUSTRY" standard)

To continue with my post I will proceed with the $110 USD carat figure that was a COMPUTER ESTIMATE PUT FORTH BY DEBEERS.

Even using this value (the highest of the 3) the FACTS will show that at this point in time, an open pit mine of the Star Kimberlite is becoming less and less of a possibility.

1,393 carats have been retrieved from the 12,124 tonnes collected (average 11.5 CPHT). Shore is on pace to collect approx 3200 carats in total which would average to 12.8 CPHT.

The latest results (released last week) were from the EARLY JOLI Kimberlite which were recovered from the 235m level. Mining 101 tells you: the lower you dig the better the results - therefore the last 6 batches returned 22 CPHT.

Now in order to continue I will preface this by saying that for my model, I'm going to use THE BEST AVAILABLE RESULTS AND DISMISS the AVERAGE CPHT, I will show that even if we calculate using the higher grade, the Star Kimberlite still falls short of economic viability.

The average grade to date for the Early Joli Kimberlite is approx 17 cpht. Most of this is from the 235m level.

Using the 17 CPHT and $110 USD/carat valuation (that was estimated by Debeers) we are left with a GROSS VALUATION of $18.70 USD/tonne.

Factor in: CONSERVATIVE $10 for mining/processing costs AND $3/tonne for PRE-PRODUCTION/CAPITAL COSTS.

WE ARE LEFT WITH: $5.70 USD NET/TONNE

If you call SHORE GOLD, they will verify that they're looking for a MINIMUM of $15 USD/tonne in order to have an economically viable mine.

In order to meet their goal SHORE WILL HAVE TO AVERAGE AT LEAST $165 USD PER CARAT to simply have any sort of FEASIBILITY. Remember I was using the 17 CPHT which is the grade at 750 feet, IF WE FACTOR AND CALCULATE THE ENTIRE AREA AND ALL THE SHAFTS SHORE DIAMOND VALUATIONS MAY NEED TO EXCEED WELL OVER $200 USD CARAT.

While not impossible, even at $165 USD/carat this would be considered a VERY HIGH VALUATION.

THIS IS WHERE WE STAND TODAY, there are still over 12000 more tonnes of kimberlite that needs to be processed and the company has indicated that MOST of it will be coming from SE 235m level which has produced over 20 CPHT.

It's going to take a huge improvement in overall grade and a very high diamond valuation in order to bring credibility/feasibity to any open pit mining project at the FALC. As CMKX shareholders (more importantly long term investors) the results at STAR KIMBERLITE will have a dramatic effect on any long term success we wish to sustain. I urge you to follow the developments at SHORE GOLD because the outcome there is paramount to any kind of legitimacy that CMKX and entire area is seeking.

In conclusion, there is definently potential at FALC, however there is much more to mining than simply finding diamondiferous kimberlite and as I've shown potential does not equal economical. On average 1 out of 200 advanced projects ever become a mine.

One large kimberlite pipe IS NOT going to translate into 1+ trillion dollars. Let's get this out of our system. That is pure speculation with absolutely no evidence or data to back up the claim. Calculating numbers on paper does not transform into reality. I've been reading posts for months regarding the potential at FALC, and there is no denying the potential in the region. However, people have CONFUSED the differences between potential and economical.

NOW HOW WILL CMKX appreciate in the short term IF DIAMONDS WON'T BE THE PLAY? SIMPLE REALLY.

THIS PART IS SPECULATION.

-large mineral find other than diamonds ie. platinum
-possibility of large NSS position
-merging of multiple companies into one conglomerate

1. UC has been buying back shares for retirement.

2. A HUGE share retirement will be announced along with confirmation of a low float/low OS.

3. The news in #2 followed by a MERGER announcement will TRIGGER A VERY HUGE RUN, ALL in our current share structure.

AT THIS POINT, MANY WILL SELL, THE REMAINING SHAREHOLDERS WILL BE TENDERED AN OFFER THEN.

4. There WILL THEN BE A MOVE TO A LARGER EXCHANGE (OTCBB or AMEX) along with multiple companies to FORM A NEW ENTITY. This will be in the form of a REVERSE SPLIT or REVERSE RESTRUCTURING that will ALLOW current shareholders to HOLD A PIECE in the newly formed MEGA CORP.

Any of these events would be the CATALYST for any share price appreciation. "Short term" this will be a paper play and HINGE on what transpires with the SHARE STRUCTURE and any Naked Short Position that does/does not EXIST. I fully expect a SHARE RETIREMENT PR coupled with a MERGER ANNOUNCEMENT which SHOULD give us shor term momentum.

Although if this rumoured "huge" mineral find is indeed factual, the funds from that deal would be available to URBAN so he could either TENDER US IMMEDIATELY or ISSUE A CASH DIVIDEND.

The name of our company may be CMKX "Diamonds" but I fully believe that the "DIAMONDS" will not play a pivotal role in any short term movement. Also, as I stated above there are still many, many unanswered questions and very low odds that it will even play a factor LONG TERM as well.

GOOD LUCK EVERYONE.

posted September 19, 2004 10:07            

quote:

---

Originally posted by Royals:
I hold 1 million shares and have since April 2004 and lurk on several CMKX boards. I've posted a few times but with any conflicting view other than pumping I've been attacked as a basher or personally. Grasshopper states " find any DD Facts" that prove CMKX is NOT a good play. Are you blind? You ignore FACTS that bring CMKX in a bad light. Noalti says to stick to DD on CMKX and then goes on personal attacks to those who have different opinions or straight out FACTS of the history and continued dealings of UC. TO Glassman, Secman,Wallace and others I thank you for the actual info you bring but not for the personal back biting. I keep my million because I bought at .0001 and there's the small hope it will go somewhere.
Does anyone know what happened to Shadow and his effort to get into the office(filing cabinet) of CMKX?

[This message has been edited by Royals (edited September 19, 2004).]

[This message has been edited by Royals (edited September 19, 2004).]

---

Royal, I do say to stick to DD on this stock. That will never change. But review my disputes with other posters. Those disputes are always in connection with personal attacks or ridicule, of me or other posters, and have nothing to do with their opinions on this stock. Read each post to see if it is reasoned opinion or DD. Read each post to see if it is ridicule or personal attack. On the former, I may disagree, but I do not "attack". On the latter, I will respond. Call it attack if you wish, but no one here has to put up with that kind of behavior.

posted September 19, 2004 12:56            

if you bought in for the LONG shortly after CMKX went pink,

your SHARE(we do call them shares cuz they represent YOUR portion/cut/peice of the pie) went from 1billionth? LOL to 1/800 billionth, then they turned around and sold 30% of the whole pie out from under that.....

FACTS hah......and it's still a share of claims.....not product

i play pennies and micro's grasshopper, i don't expect them to be MSFT or SNE or MMM....
but this play requires that you IGNORE the facts entirely....
i have never said don't buy a hundred$ or two, but when i hear people saying they are buying 10's of thousands of dollars worth and continue to insist this is a good buy, i have to wonder who GAVE them their money, cuz i doubt anybody who earns their money would disrespect it this way...LOL

posted September 19, 2004 13:01            

that of 100 billion$ worth of diamonds after expenses....

posted September 19, 2004 16:25            

quote:

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Gender:
Posts: 504
Shore Gold DOES work with us! Proof....
« Thread started on: Today at 11:24am »

--------------------------------------------------------------------------------

From SHANE RESOURCES Filing, SHORE GOLD CONNECTION. Go here, click on "view this public company's documents", and read the Aug. 23rd 2004 MD&A! MONROE LAKE SECTION..Shore Gold info is there! http://www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00004138
Logged

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posted September 19, 2004 16:31            

quote:

---

DAAAAAAAAAAA BEARS!LOL
Hey, the way they played today,They MUST read our CMKX thread.You know I'm just kiddin' with ya Upman.
Oh yea,I can't wait for my divvys.HA HA HA

---

My answer is in an e-mail to Will. Maybe he'll forward it to you.

posted September 19, 2004 16:51            

quote:

---

Originally posted by Upside:
originally posted by highwayman:
My answer is in an e-mail to Will. Maybe he'll forward it to you.

---

posted September 19, 2004 18:35            

quote:

---

Originally posted by Upside:
Hey highway, I see that "horse" team didn't fare too well today either.

---

One point,@#%$!Guess I picked the wrong one point upset.HA HA HA.And it was upsetting.

posted September 19, 2004 23:00            

Citation: White Bear Construction Ltd. v. Casavant, 1999 ABQB 1013
Date: 1999-12-22
Docket: 9903-03107
URL: http://www.canlii.org/ab/cas/abqb/1999/1999abqb1013.html


White Bear Construction Ltd. v. Casavant, 1999 ABQB 1013

Date: 19991222

Action No. 9903 03107

IN THE COURT OF QUEEN'S BENCH OF ALBERTA

JUDICIAL DISTRICT OF EDMONTON

BETWEEN:

WHITE BEAR CONSTRUCTION LTD., KEN HODGSON

AND SHARON HODGSON

Plaintiffs

- and -

URBAN CASAVANT, ALLAN MOEN, MCM MINERALS INC.,

FULL TIME MANAGEMENT INC., AND PAN PACIFIC GEM

INDUSTRY (TIANJIN) CO., LTD.

Defendants

_______________________________________________________

MEMORANDUM OF DECISION

of the

HONOURABLE MADAM JUSTICE J.B. VEIT

_______________________________________________________

APPEARANCES:

Barry M. King

for the Plaintiffs

Gregory J. Leia

for the Defendants

Summary

[1] The defendants asks the court to lift the ex-parte attachment order the court issued on December 17, 1999; they argue that the plaintiffs have failed to comply with the requirements of s. 17 of the Civil Enforcement Act and that the plaintiffs have failed to file adequate undertakings in damages.

[2] The application is allowed in part. On an interim interim basis, that is until the hearing of the plaintiffs’ application for a pre-judgment attachment order on January 11, 2000, the ex parte injunction is set aside as it relates to Mr. Casavant’s spouse and children.

Cases and authority cited

[3] By the court: Rea v. Patmore [1999] A.J. No. 1168 (Q.B.); Osman Auction Inc. v. Belland [1998] A.J. No. 1443 (Q.B.); Canadian Engineering Surveys Co. v. Esso Resources Canada (1988) 89 A.R. 35 (M.) and cases discussed by Stevenson & Cote under R. 214(1).

1. Background

[4] The plaintiffs obtained an ex-parte attachment order on the basis of affidavits from Ken Hodgson, Frank Olson and Norm Sparks.

In his affidavit, Mr. Hodgson swears that:

- both White Bear and he in his personal capacity have advanced funds to the defendants Allan Moen and Urban Casavant which funds were to be repaid to White Bear;

- demand has been made for repayment, but no repayment has been received;

- the plaintiffs are owed $1,037,902.35;

- he is not aware of any assets of Moen and Casavant in Alberta other than a claim they have advanced against John Bergen for 130,000 shares and 65,000 warrants in Radar Acquisitions Corp. He states that he believes Moen and Casavant to be judgment proof;

- 85,000 shares of Radar Acquisitions Corp were traded on the 14th and 15th of December 1999 by brokerage houses normally used by Urban Casavant and Allan Moen;

- the list price for Radar Acquisitions Corp has dropped by more than $0.27 per share since December 14th;

- Urban Casavant and Allan Moen have engaged in a number of situations where stock listing prices have been manipulated including personal information of involvement in transactions involving Sepik Gold Corporation;

- Allan Moen obtained 130,000 shares and 65,000 warrants in Radar Acquisitions Corp. as a result of a private placement which became free trading in October, 1999;

- he is aware that several other investors have similar claims against Moen and Casavant.

[5] He swore that the plaintiffs were likely to be seriously hindered in the enforcement of any judgments that they would obtain in this action because the defendants are trading Radar Acquisitions Corp. shares in a pattern which will result in the disposition of the shares at less than their real value.

[6] In his affidavit, Frank Olson swears that Sky Rise Farms Ltd. has advanced $1,333,080.00 to Allan Moen and Urban Casavant, that the monies should have been repaid, and that although demand has been made for repayment, repayment has not been made. Mr. Olson also swears that he has been involved with Allan Moen and Urban Casavant for a number of years, and that he is not aware of any assets owned by them in Alberta.

[7] In his affidavit, Norm Sparks swears that Norsand Farms Ltd. has advanced more than $650,000.00 to Messrs. Moen and Casavant, which funds were to be repaid, and that although demand has been made for repayment, repayment has not been made. He also states that he has been involved with Messrs. Moen and Casavant for many years and that he is not aware of any assets owned by them in Alberta.

[8] In support of their application to have the ex-parte attachment order set aside, Urban Casavant and Allan Moen have sworn affidavits. In his affidavit, Mr. Casavant has sworn that:

- Ken Hodgson told him that he had purchased 600,000 shares of Sepik Gold Corporation for approximately $0.80 per share for a gross cost of approximately $480,000.00 He advised he sold the same shares for gross proceeds of $270,000.00. The alleged trading loss was approximately $210,000.00. Ken Hodgson asked to indemnify him for such losses and I agreed to provide the following consideration:

cheque $20,000.00

cheque $10,000.00

interbroker transfer from Arnold Guptka (IPO Capital) to

Canaccord in the name of Ken/Sharon Hodgson (60,000 shares

of Kincho Global Enterprises ($0.75 per share) and 50,000 shares

of Sepik Gold Corporation ($0.40 share) $100,000

100,000 shares of Radar Acquisition Corp. $ 80,000

[9] Mr. Casavant does not explain why he would agree to compensate Mr. Hodgson for the latter’s trading losses, but Mr. Casavant asserts that Mr. Hodgson never provided proof of such losses.

- On April 8, 1998, White Bear advanced to him $45,000.00 on behalf of Full Time Management Inc., a receipt for which is attached. I delivered to White Bear 100,000 shares of Sepik Gold Corporation at a value of $58,850. White Bear wrote a cheque to me for the difference being $13,850.00, a receipt for which is attached.

- In the spring of 1998, White Bear advanced to me the sum of $55,000. I delivered to White Bear 100,000 shares of Sepik Gold Corporation with a value of $55,000.00.

- On April 1,1998, White Bear advanced $37,450.00 to me on behalf of Full Time Management Inc., a receipt for which is attached. This was a debt of Full Time Management Inc. to pay for corporate staking. I was not to be personally liable for this indebtedness.

- On or about June 15, 1998, I signed an accommodation letter/promissory note in favour of White Bear with respect to the purchase by Pan Pacific of the 4 Chip Trailers. The accommodation letter/promissory note refers to $126,502.35 and 9,000 shares of Sepik Gold Corporation, a copy of which note is attached. I believe that this debt would have been retired upon the sale by White Bear of the 4 Chip Trailers.

- I attach a copy of my cheque #054 dated June 1,1998 in the amount of $190,000.00. Ken Hodgson never advanced $190,000.00 to myself.

- I attach a copy of my cheque #177 dated December 9, 1998 in the amount of $325,000.00. Ken Hodgson did not advance $325,000.00 to myself.

- I attach a copy of my cheque #178 dated January 7, 1999 in the amount of $230,000.00. Ken Hodgson did not advance $230,000.00 to myself.

- I provided the plaintiffs with five blank cheques as sign of good faith that debts for which I was personally responsible would be paid. Two cheques were used to pay out the first transaction relating to the trading loss. The remaining three cheques were completed by the plaintiffs without my authorization.

[10] Mr. Casavant also swears that a corporation owned by his children, Team Trading Enterprises is owed at least 800,000 shares of Radar Acquisition Corp having a market value of $2,040,000, and his spouse is owed at least 300,000 shares of Radar, having a market value of $700,000.00 and his brother-in-law Eric Reid is also owed at least 300,000 shares of Radar.

[11] In his affidavit, Mr. Moen swears that:

- he agreed to sell to White Bear a 5% interest in Pan Pacific if White Bear made a loan of approximately $150,000 to $175,000 to Pan Pacific. White Bear made the loan by assigning its equity in a 1994 Peterson Pacific Chipper Model - with a market value of $450,000 - for $1.00 and assumption of the existing lease financing to the Bank of Nova Scotia, Prince Albert, in the amount of $300,000.00, and attaches the bill of sale signed by Pan Pacific and White Bear. On April 15, 1998, Pan Pacific sold the 1994 Peterson to Wajax Industries Ltd. for $450,000.00 plus GST, and attaches a letter outlining the terms of sale. The Bank of Nova Scotia financing was paid out on sale. The net sale proceeds of $170,000 inclusive of GST would have been owing by Pan Pacific to White Bear.

- on June 8, 1998 White Bear sold to Pan Pacific four trailers for $150,000.00 plus GST, and attaches a copy of the bill of sale. Although the document states that the sale price was $200,000.00, the sale price was to be $150,000.00. Also, although the document sates that the purchase price was paid in full no payment was made to White Bear. The changes were made to the documents to obtain financing from Sky Rise Farms Ltd. Urban Casavant and Pan Pacific jointly made a promissory note in favour of Ken Hodgson and Pan Pacific jointly for $150,000, and attaches a copy of the promissory note. There were two additional notes granted at the same time, one for $30,000.00 made by myself to Ken/Sharon Hodgson, a copy of which is attached, and one for $126,602.35 and 9,000 shares of Sepik Gold Corporation. The latter note represents the difference between $150,000.00 plus GST less the $30,000.00 from Urban Casavant. On June 15, 1998 Pan Pacific obtained a mortgage on the 4 Chip Trailers from Sky Rise Farms Ltd. (Frank Olson) in the amount of $150,000.00, and attaches a copy of the General Security Agreement. Only $120,000.00 was advanced by Sky Rise Farms Ltd. and the remaining $30,000.00 represented loan fees. White Bear received $30,000.00 from the loan proceeds in satisfaction of Urban Casavant’s note. On June 15, 1998, Pan Pacific sold the 4 chip trailers to Sky Rise Farms Ltd. On June 15,1998, Sy Rise Farms Ltd sold the 4 chip trailers to White Bear for $150,000.00 plus GST, and attaches a copy of the bill of sale. Throughout this period, White Bear retained possession of the 4 chip trailers. I was advised by Frank Olson that White Bear has sold the 4 chip trailers and retained the proceeds and has not accounted for the sale proceeds. The sale proceeds would have been applied against the $126,602.35 note. As far as I am aware, the only person who is out of pocket on this transaction is Sky Rise Farms Ltd. for their loan proceeds.

- White Bear agreed to purchase from Pan Pacific 100,000 shares of Sepik Gold Corporation for the sum of $55,000.00, and attaches the receipt.

- In August, 1999, I personally pledged 150,000 shares of Radar Acquisition Corp which I received from John Berger in July of 1999 to White Bear to secure the indebtedness of Pan Pacific to White Bear. The market value of those shares on December 17, 1999 was $382,500.00 ($2.55 per share). White Bear has not advised if they remain in possession of these shares and/or if sold White Bear has not accounted to Pan Pacific with regard to the sale. [Mr. Moen does not attach any documentation in support of this contention.]

- White Bear bought a 7% interest in Full Time for $35,000.00 on March 24, 1999 with a right to acquire an additional 7% for $35,000.00, and attaches a copy of the agreement. MCM signed a promissory note for the $35,000.00 advanced on March 24, 1998 and attaches a copy of that note. [There appears to be a write-over on the document attached. However, in the production of records from the plaintiffs, there is a copy of a document from MCM Minerals Inc. which appears to relate to this transaction and which is dated March 24th, 1998.] On April 1,1998 White Bear advanced $37,500.00 to Urban Casavant and attaches a copy of the receipt signed by Casavant on behalf of Full Time.

- At no time did I personally borrow funds from White Bear, Ken Hodgson and/or Sharon Hodgson. I agreed to sign the note of June 15, 1995 for $30,000.00 from Urban Casavant to Ken/Sharon as additional comfort for the $30,000.00 debt owing by Pan Pacific which was paid. Until White Bear accounts for the 150,000 shares of Radar Acquisition Corp it holds as lender, I cannot reconcile whether there are any funds owing by Pan Pacific to White Bear.

- I have an action against John Bergen for delivery of 300,000 shares of Radar Acquisition Corp. with a market value of $700,000.00. These shares are subject to litigation in which the solicitor for the applicant plaintiffs is the solicitor for the defendant John Bergen. John Bergen and one of the plaintiffs in this action, Ken Hodgson, are directors of Radar Acquisition Corp.

[12] White Bear and Ken Hodgson and Sharon Hodgson have provided an affidavit of documents which essentially contains the same documents as the documents appended to the affidavits of Moen and Casavant. There is no document from White Bear evidencing advances of $190,000.00, $325,000.00 and $230,000.00 to Urban Casavant.

[13] The plaintiffs/claimants have not provided any evidence about the Moen - Casavant pattern of trading in Radar Acquisitions Corp.

[14] This action was commenced in February, 1999. In July, 1999, at the request of the defendants, Master Floyd ordered the plaintiffs/claimants to file an affidavit of documents. The plaintiffs have not yet examined the defendants on discovery.

[15] The defendants assert that they have provided the plaintiffs with their complete stock trading records to July 1999.

[16] The defendants allege that the transactions that give rise to the claim in these proceedings arose out of a decision in June 1998 to acquire the shares of Radar, basically a dormant shell that owned some ammonite properties in northern Saskatchewan, to use as a structure to develop a mining venture in northern Saskatchewan. A group of investors agreed to buy the control block of Radar from John Bergen. The agreements were that Bergen would transfer 2.5 million shares to 5 individuals, who did not include Urban Casavant, but did include Casavant’s wife, children, brother-in-law, and Ken Hodgson. The consideration paid for the shares at that time was 4 cents a share. According to the defendants, at the end of July 1998, the first payment on the Bergen block was made, and half the shares in the Bergen control block were delivered. The defendants allege that when the stock of Radar increased from 10 cents to 80 cents a share, all the new owners of the control block wanted to do a private placement in Colorado. They then allege that the relationship among the members of the control block broke down in late 1998. The defendants allege that there was an informal pooling arrangement in place pursuant to which all members of the group would wait for the stock to reach $10.00 per share before selling any. The defendants allege that not all parties respected the pooling agreement, some sold their shares into the market, and the allegations and counter allegations began.

[17] The defendants allege that, during the trading history of Radar, the stock has dropped in increments greater than 27 cents a share.

2. Statutory and jurisprudential requirements to obtain a pre-judgment attachment order

[18] As pointed out in earlier decisions, because pre-judgment relief is extraordinary, a court is not bound to grant that relief even if an applicant satisfies all of the statutory conditions.

[19] The statutory conditions are found in s. 17 (2) of the Civil Enforcement Act:

- there is a reasonable likelihood that the claimant’s claim against the defendant will be established. (It will be noted that this is a substantially higher threshold that the requirement for an interim injunction which is only that there is a serious issue to be tried.); and

- there are reasonable grounds for believing that the defendant is dealing with the defendant’s exigible property,

- otherwise than for the purpose of meeting the defendant’s reasonable and ordinary business or living expenses, and

- in a manner that would be likely to seriously hinder the claimant in the enforcement of a judgment against the defendant.

[20] The Act also provides in s. 17(4) that the court shall not grant an attachment order unless the claimant undertakes to pay any damages or indemnity that the court may subsequently decide should be paid to the defendant or a third person and the court could require the claimant to provide security for the undertaking.

[21] In section 17(5), the Legislature has ordered that an attachment order shall not attach property that exceeds an amount or a value that appears to the court to be necessary to meet the claimant’s claim.

3. Applying the statutory and jurisprudential standards to this case

[22] On the basis of the material filed on this application, the plaintiffs have not established that there is a reasonable likelihood that the entirety of the claimants’s claim against the defendant will be established. The standard established by the legislation is a high one, but the relief requested is extraordinary.

[23] The plaintiffs have established that there is a reasonable likelihood that they will establish their claim against:

- Pan Pacific for $170,000.00, inclusive of GST, in relation to the dealings in the Peterson Pacific Chipper;

- MCM for $35,000.00 advanced on March 24, 1998;

- Urban Casavant for $37,500.00 advanced on April 1, 1998, on behalf of Full Time;

- Urban Casavant for $126,502.35 for the promissory note relating to the purchase by Pan Pacific of the 4 chip trailers.

[24] Indeed, the Statements of Defence filed in this lawsuit acknowledge that the defendants owe money to White Bear.

[25] The plaintiffs have not established that they have any claim against Urban Casavant’s spouse, or brother-in-law Eric Reid, or the Casavant children who are the owners of Team Trading. Property owned by those persons cannot, on the basis of the evidence provided on this motion, be attached since they do not owe White Bear or the Hodgsons any money. In this context, I note that the submissions made during the course of the hearing establish that Ms. Casavant, Eric Reid and Team Trading all became the legal owners of shares of Radar Acquisitions Corp. long before the plaintiffs claimed any debt against the defendants; therefore, whatever else this case may be, there is no evidence at this stage that Mr. Casavant has traded away shares that he owned to his wife, his brother-in-law and his children with a view to avoiding his debts to the plaintiffs.

[26] The plaintiffs wish to use the evidence of Mr. Moen on his cross-examination on affidavit in another action to establish that Mr. Casavant’s children have given Mr. Casavant authority to trade those shares. There is a question about whether the plaintiffs are entitled to use that evidence, obtained in another proceeding, in this lawsuit, except, obviously in the cross-examination of any of the affiants or to test the credibility of the defendants on discovery: Canadian Engineering Surveys. The weight of the jurisprudence appears to be that a statement made in another proceeding cannot be used for the truth of its contents, but only for the purpose of testing credibility. In this case, of course, although the action was commenced in February 1999, the plaintiffs have not yet examined Mr. Moen. In any event, however, even if Mr. Moen’s sworn statement in another proceeding could be used for the truth of its contents in this proceeding, the statement would not assist the plaintiffs. The mere fact that Mr. Casavant can trade shares owned by Team Trading does not mean that he is the beneficial owner of the shares legally owned by Team Trading.

[27] The plaintiffs have not provided any explicit evidence to establish that the recent trading in Radar Acquisitions Corp. is outside the normal course of business. The absence of such evidence is, of course, fatal to an application for a pre-judgment attachment order. However, since the submissions at the hearing including a submission that, during the last 90 days the stock has traded as high as $4.00 a share, the sale of 85,000 shares by insiders over a two day period may indeed be outside the normal course of trading of the stock. The plaintiffs have, therefore, barely established the minimum evidence required to meet the statutory requirements for the relief.

[28] The plaintiffs have asked for an adjournment to allow them to cross-examine Messrs. Casavant and Allan Moen on their affidavits. They can have an adjournment, of course, but they cannot keep the ex-parte attachment order in place during the adjournment

[29] There is no documentary support for the plaintiffs’ assertion that they, or any of them, advanced over $1,000,000.00 to defendants, or any of them. There is no suggestion, except as specifically acknowledged in the affidavits of Messrs Casavant and Moen that Mr. Casavant’s spouse, or children or brother-in-law guaranteed any of the corporate debts to the plaintiffs. The fact that Mr. Casavant may have trading privileges in relation to stock legally owned by his spouse, his children and his brother-in-law is not the equivalent of concluding that Mr. Casavant is the beneficial owner of the shares in the hands of his spouse, his children, and his brother-in-law.

[30] The plaintiffs have not had the time to answer the claim from Mr. Moen that shares have been deposited as security for any outstanding indebtedness. It is clear, however, than one of the issues that will have to be addressed when the matter is heard next month, is the issue of the claimed security. The Act states that any attachment order should be as narrow as possible. If shares were pledged as security for the outstanding debt, the security might constitute a full answer to the plaintiffs’s claim.

[31] Section 17 of the Act requires, at a minimum, that the applicant for a pre-judgment attachment order establish that proceedings have been commenced in Alberta to establish his claim. Mr. Hodgson swears that he believes that many other claims are being made against the defendants. The affidavits from Olsen and Sparks support that contention. However, making a claim, and establishing that a claim is reasonably likely to be established, are two different things. Messrs. Olsen and Sparks have just commenced legal proceedings; they don’t have judgments. The Civil Enforcement Act appears to address the enforcement of well established claims; it may be that where a creditor is concerned about a debtor’s ability to meet claims as they become due, which may be a slightly different concept from that of not honouring proved claims, the creditor’s remedy is found in bankruptcy legislation. On this interim application, I do not take the evidence of Messrs. Olsen and Sparks into account.

4. Adequacy of the undertaking

[32] White Bear and Ken Hodgson filed undertakings in damages; Sharon Hodgson has filed no such undertaking.

[33] It is a small point but Sharon Hodgson, as one of the plaintiffs in this matter, and one of the claimants, is required to file an undertaking in order for the plaintiffs to technically comply with the statutory prerequisites for obtaining an attachment order.

[34] One of the issues that will be decided at the hearing on the merits is whether the plaintiffs should be required to give security for their undertakings. The parties will find some authority on this issue under the heading “fortifying an undertaking”.

5. Adjournment

[35] White Bear’s application for an attachment order is adjourned to a Special Chambers hearing on January 11, 2000 at 2 p.m. Given the need to have a hearing on the merits as soon as possible on the one hand, and the exigencies of having the affiants cross-examined on their affidavits during the holiday season on the other, the parties are relieved of the obligation to file the ususal special chambers brief. In lieu of such briefs, each party will provide the equivalent for this application of a family law special chambers letter - i.e. a short document that outlines the issues the court will have to decide and the statutory and case law on which the party applies. The plaintiffs/claimants will have carriage of the hearing on January 11. All parties will cross-examine any of the affiants they choose to cross-examine prior to the next court hearing. The plaintiffs/claimants will provide their short outline of the application to the defendants at the latest by noon on Thursday, January 6, 2000; the defendants/respondents will provide their short outline of their position to the plaintiffs at the latest by 4 p.m. on Friday, January 7, 2000

6. Costs

[36] The costs of this hearing will be dealt with by the judge who hears the special chambers hearing on January 11, 2000. By then, it will be clear, for example, whether shares

were placed with the claimants as security for outstanding indebtedness, and the resolution of that issue is likely to have an impact on the award of costs.

HEARD on the 21st day of December, 1999.

DATED at Edmonton, Alberta this 22nd day of December, 1999.

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