
Byline: Al Lewis Rocky Mountain News Staff Writer
Regulators are still crying fraud, but investors' dreams of a big gold strike panned out Wednesday as stock of Golden Eagle International Inc. rose as much as 460 percent.
The Securities and Exchange Commission suspended trading of stock in the tiny Denver-based mining company on June 19, warning that the company's bold claims of a world-class gold find in Bolivia may prove false.
But by Tuesday morning, the two-week suspension had expired and the stock was exploding. Shares rose from 31 cents to $1.75 before settling at 70 cents by the end of the day. In May, the stock had traded for as little as 8 cents.
Despite stern warnings from the SEC, investors' faith in Golden Eagle has not been shaken, especially among those sitting on tenfold gains.
``I didn't sell a penny's worth of stock,'' said Dallas investor Andr'e Nel, who purchased his stake long before the company began making its claims. ``Why would I want to cash out when this story hasn't even started yet?''
Golden Eagle President Terry Turner said he urges investors to be extremely cautious until the company's find can be more carefully scrutinized.
``Take a step back and don't get caught up in speculative buying,'' he said. ``If this stock is everything it's cracked up to be, it will be there a month from now, and it will be there a year from now.''
The SEC filed civil fraud charges against Golden Eagle and some of its officers in early May. The agency said the defendants issued false press releases to hype Golden Eagle stock and then dumped it upon unsuspecting investors between 1994 and 1996. Turner, who owns no stock in the company, was not named in that action.
On May 22, a few weeks after that announcement, Golden Eagle issued a press release saying it had a ``proven reserve'' of 6.43 million ounces and ``inferred resources'' of 157.4 million ounces of gold on 4,810 acres it controls in Cangalli, Bolivia. If the claims prove true, Golden Eagle will be sitting on the largest gold mine in the world and reserves worth billions.
As Golden Eagle stock rocketed out of penny stock territory on Tuesday, SEC investigator Bob Fusfeld said the agency still has concerns, but is limited as to how long it can halt trading. He would not comment further.
Meanwhile, Golden Eagle filed a report on Tuesday acknowledging that the SEC is considering fraud charges against the company for its May 22 press release.
Golden Eagle's filing, known as a Form 8-K Current Report, was highly cautionary.
It said the company is interviewing independent mining firms to audit the report of its geologist, Guido Paravacini, who is responsible for Golden Eagle's claims.
``There can be no assurance that a new independent firm will confirm any `reserves' or `mineralization' on the Cangalli concessions,'' the 8-K said.
The company also said that Paravacini's report is ``subject to substantial and material changes including the reduction or elimination of `reserves.' ''
The 8-K also warned that Golden Eagle:
* Has no experience operating large mines.
* Lacks capital to mine its property.
* Has not filed audited financial statements, including its 1997 annual report and its 1998 quarterly reports, because of accounting difficulties.
* Is considering a secondary stock offering of up to 10 million shares to raise money for open-pit mining.
Turner said Golden Eagle's 8-K report is not an about-face.
``We have our own beliefs, and we stated them in the May 22 press release,'' he said. ``We know what Paravacini said, but we can't ensure what another firm will find.''
Meanwhile, geologists eye Golden Eagle's claims with a heavy dose of skepticism.
``They've drawn a very large conclusion with limited data, and that's pretty bold,'' said Leigh Freeman, president of Orvana Minerals Corp., a Canadian-based company with offices in Denver. ``If their conclusions are accurate, it would be the largest gold deposit in the world.''
Freeman said a claim of 157 million ounces would have to be based on several thousand samples to be credible. Golden Eagle's find was based on 844 bulk samples and 2,900 assays.
Meanwhile, the largest gold mine in Bolivia produces only about 300,000 ounces of gold per year from a proven reserve of about 5 million ounces, Freeman said. And Newmont Gold Co., the largest gold mining company in North America, boasts gold reserves of only 53 million ounces worldwide.
``There simply hasn't been enough work done,'' said Ted Worthington, a geologist and reporter for The Northern Miner, a Canadian trade publication with offices in Denver.
In its June 8-14 edition, The Northern Miner analyzed Golden Eagle's claims and found them questionable.
``We found the size of the resource hard to credit and one of the reports that defined it less than convincing,'' it said. ``Your caution about this company is well-advised.''
CAPTION(S):
Color Photo
Terry Turner.
INVESTORS HIT JACKPOT IN GOLD AS SEC FRETS GOLDEN EAGLE STOCK SOARS AS TRADING SUSPENSION ENDS.(Business)
Byline: Al Lewis Rocky Mountain News Staff Writer
Regulators are still crying fraud, but investors' dreams of a big gold strike panned out Wednesday as stock of Golden Eagle International Inc. rose as much as 460 percent.
The Securities and Exchange Commission suspended trading of stock in the tiny Denver-based mining company on June 19, warning that the company's bold claims of a world-class gold find in Bolivia may prove false.
But by Tuesday morning, the two-week suspension had expired and the stock was exploding. Shares rose from 31 cents to $1.75 before settling at 70 cents by the end of the day. In May, the stock had traded for as little as 8 cents.
Despite stern warnings from the SEC, investors' faith in Golden Eagle has not been shaken, especially among those sitting on tenfold gains.
``I didn't sell a penny's worth of stock,'' said Dallas investor Andr'e Nel, who purchased his stake long before the company began making its claims. ``Why would I want to cash out when this story hasn't even started yet?''
Golden Eagle President Terry Turner said he urges investors to be extremely cautious until the company's find can be more carefully scrutinized.
``Take a step back and don't get caught up in speculative buying,'' he said. ``If this stock is everything it's cracked up to be, it will be there a month from now, and it will be there a year from now.''
The SEC filed civil fraud charges against Golden Eagle and some of its officers in early May. The agency said the defendants issued false press releases to hype Golden Eagle stock and then dumped it upon unsuspecting investors between 1994 and 1996. Turner, who owns no stock in the company, was not named in that action.
On May 22, a few weeks after that announcement, Golden Eagle issued a press release saying it had a ``proven reserve'' of 6.43 million ounces and ``inferred resources'' of 157.4 million ounces of gold on 4,810 acres it controls in Cangalli, Bolivia. If the claims prove true, Golden Eagle will be sitting on the largest gold mine in the world and reserves worth billions.
As Golden Eagle stock rocketed out of penny stock territory on Tuesday, SEC investigator Bob Fusfeld said the agency still has concerns, but is limited as to how long it can halt trading. He would not comment further.
Meanwhile, Golden Eagle filed a report on Tuesday acknowledging that the SEC is considering fraud charges against the company for its May 22 press release.
Golden Eagle's filing, known as a Form 8-K Current Report, was highly cautionary.
It said the company is interviewing independent mining firms to audit the report of its geologist, Guido Paravacini, who is responsible for Golden Eagle's claims.
``There can be no assurance that a new independent firm will confirm any `reserves' or `mineralization' on the Cangalli concessions,'' the 8-K said.
The company also said that Paravacini's report is ``subject to substantial and material changes including the reduction or elimination of `reserves.' ''
The 8-K also warned that Golden Eagle:
* Has no experience operating large mines.
* Lacks capital to mine its property.
* Has not filed audited financial statements, including its 1997 annual report and its 1998 quarterly reports, because of accounting difficulties.
* Is considering a secondary stock offering of up to 10 million shares to raise money for open-pit mining.
Turner said Golden Eagle's 8-K report is not an about-face.
``We have our own beliefs, and we stated them in the May 22 press release,'' he said. ``We know what Paravacini said, but we can't ensure what another firm will find.''
Meanwhile, geologists eye Golden Eagle's claims with a heavy dose of skepticism.
``They've drawn a very large conclusion with limited data, and that's pretty bold,'' said Leigh Freeman, president of Orvana Minerals Corp., a Canadian-based company with offices in Denver. ``If their conclusions are accurate, it would be the largest gold deposit in the world.''
Freeman said a claim of 157 million ounces would have to be based on several thousand samples to be credible. Golden Eagle's find was based on 844 bulk samples and 2,900 assays.
Meanwhile, the largest gold mine in Bolivia produces only about 300,000 ounces of gold per year from a proven reserve of about 5 million ounces, Freeman said. And Newmont Gold Co., the largest gold mining company in North America, boasts gold reserves of only 53 million ounces worldwide.
``There simply hasn't been enough work done,'' said Ted Worthington, a geologist and reporter for The Northern Miner, a Canadian trade publication with offices in Denver.
In its June 8-14 edition, The Northern Miner analyzed Golden Eagle's claims and found them questionable.
``We found the size of the resource hard to credit and one of the reports that defined it less than convincing,'' it said. ``Your caution about this company is well-advised.''
CAPTION(S):
Color Photo
Terry Turner.
INVESTORS HIT JACKPOT IN GOLD AS SEC FRETS GOLDEN EAGLE STOCK SOARS AS TRADING SUSPENSION ENDS.(Business)
Byline: Al Lewis Rocky Mountain News Staff Writer
Regulators are still crying fraud, but investors' dreams of a big gold strike panned out Wednesday as stock of Golden Eagle International Inc. rose as much as 460 percent.
The Securities and Exchange Commission suspended trading of stock in the tiny Denver-based mining company on June 19, warning that the company's bold claims of a world-class gold find in Bolivia may prove false.
But by Tuesday morning, the two-week suspension had expired and the stock was exploding. Shares rose from 31 cents to $1.75 before settling at 70 cents by the end of the day. In May, the stock had traded for as little as 8 cents.
Despite stern warnings from the SEC, investors' faith in Golden Eagle has not been shaken, especially among those sitting on tenfold gains.
``I didn't sell a penny's worth of stock,'' said Dallas investor Andr'e Nel, who purchased his stake long before the company began making its claims. ``Why would I want to cash out when this story hasn't even started yet?''
Golden Eagle President Terry Turner said he urges investors to be extremely cautious until the company's find can be more carefully scrutinized.
``Take a step back and don't get caught up in speculative buying,'' he said. ``If this stock is everything it's cracked up to be, it will be there a month from now, and it will be there a year from now.''
The SEC filed civil fraud charges against Golden Eagle and some of its officers in early May. The agency said the defendants issued false press releases to hype Golden Eagle stock and then dumped it upon unsuspecting investors between 1994 and 1996. Turner, who owns no stock in the company, was not named in that action.
On May 22, a few weeks after that announcement, Golden Eagle issued a press release saying it had a ``proven reserve'' of 6.43 million ounces and ``inferred resources'' of 157.4 million ounces of gold on 4,810 acres it controls in Cangalli, Bolivia. If the claims prove true, Golden Eagle will be sitting on the largest gold mine in the world and reserves worth billions.
As Golden Eagle stock rocketed out of penny stock territory on Tuesday, SEC investigator Bob Fusfeld said the agency still has concerns, but is limited as to how long it can halt trading. He would not comment further.
Meanwhile, Golden Eagle filed a report on Tuesday acknowledging that the SEC is considering fraud charges against the company for its May 22 press release.
Golden Eagle's filing, known as a Form 8-K Current Report, was highly cautionary.
It said the company is interviewing independent mining firms to audit the report of its geologist, Guido Paravacini, who is responsible for Golden Eagle's claims.
``There can be no assurance that a new independent firm will confirm any `reserves' or `mineralization' on the Cangalli concessions,'' the 8-K said.
The company also said that Paravacini's report is ``subject to substantial and material changes including the reduction or elimination of `reserves.' ''
The 8-K also warned that Golden Eagle:
* Has no experience operating large mines.
* Lacks capital to mine its property.
* Has not filed audited financial statements, including its 1997 annual report and its 1998 quarterly reports, because of accounting difficulties.
* Is considering a secondary stock offering of up to 10 million shares to raise money for open-pit mining.
Turner said Golden Eagle's 8-K report is not an about-face.
``We have our own beliefs, and we stated them in the May 22 press release,'' he said. ``We know what Paravacini said, but we can't ensure what another firm will find.''
Meanwhile, geologists eye Golden Eagle's claims with a heavy dose of skepticism.
``They've drawn a very large conclusion with limited data, and that's pretty bold,'' said Leigh Freeman, president of Orvana Minerals Corp., a Canadian-based company with offices in Denver. ``If their conclusions are accurate, it would be the largest gold deposit in the world.''
Freeman said a claim of 157 million ounces would have to be based on several thousand samples to be credible. Golden Eagle's find was based on 844 bulk samples and 2,900 assays.
Meanwhile, the largest gold mine in Bolivia produces only about 300,000 ounces of gold per year from a proven reserve of about 5 million ounces, Freeman said. And Newmont Gold Co., the largest gold mining company in North America, boasts gold reserves of only 53 million ounces worldwide.
``There simply hasn't been enough work done,'' said Ted Worthington, a geologist and reporter for The Northern Miner, a Canadian trade publication with offices in Denver.
In its June 8-14 edition, The Northern Miner analyzed Golden Eagle's claims and found them questionable.
``We found the size of the resource hard to credit and one of the reports that defined it less than convincing,'' it said. ``Your caution about this company is well-advised.''
CAPTION(S):
Color Photo
Terry Turner.
INVESTORS HIT JACKPOT IN GOLD AS SEC FRETS GOLDEN EAGLE STOCK SOARS AS TRADING SUSPENSION ENDS.(Business)
Byline: Al Lewis Rocky Mountain News Staff Writer
Regulators are still crying fraud, but investors' dreams of a big gold strike panned out Wednesday as stock of Golden Eagle International Inc. rose as much as 460 percent.
The Securities and Exchange Commission suspended trading of stock in the tiny Denver-based mining company on June 19, warning that the company's bold claims of a world-class gold find in Bolivia may prove false.
But by Tuesday morning, the two-week suspension had expired and the stock was exploding. Shares rose from 31 cents to $1.75 before settling at 70 cents by the end of the day. In May, the stock had traded for as little as 8 cents.
Despite stern warnings from the SEC, investors' faith in Golden Eagle has not been shaken, especially among those sitting on tenfold gains.
``I didn't sell a penny's worth of stock,'' said Dallas investor Andr'e Nel, who purchased his stake long before the company began making its claims. ``Why would I want to cash out when this story hasn't even started yet?''
Golden Eagle President Terry Turner said he urges investors to be extremely cautious until the company's find can be more carefully scrutinized.
``Take a step back and don't get caught up in speculative buying,'' he said. ``If this stock is everything it's cracked up to be, it will be there a month from now, and it will be there a year from now.''
The SEC filed civil fraud charges against Golden Eagle and some of its officers in early May. The agency said the defendants issued false press releases to hype Golden Eagle stock and then dumped it upon unsuspecting investors between 1994 and 1996. Turner, who owns no stock in the company, was not named in that action.
On May 22, a few weeks after that announcement, Golden Eagle issued a press release saying it had a ``proven reserve'' of 6.43 million ounces and ``inferred resources'' of 157.4 million ounces of gold on 4,810 acres it controls in Cangalli, Bolivia. If the claims prove true, Golden Eagle will be sitting on the largest gold mine in the world and reserves worth billions.
As Golden Eagle stock rocketed out of penny stock territory on Tuesday, SEC investigator Bob Fusfeld said the agency still has concerns, but is limited as to how long it can halt trading. He would not comment further.
Meanwhile, Golden Eagle filed a report on Tuesday acknowledging that the SEC is considering fraud charges against the company for its May 22 press release.
Golden Eagle's filing, known as a Form 8-K Current Report, was highly cautionary.
It said the company is interviewing independent mining firms to audit the report of its geologist, Guido Paravacini, who is responsible for Golden Eagle's claims.
``There can be no assurance that a new independent firm will confirm any `reserves' or `mineralization' on the Cangalli concessions,'' the 8-K said.
The company also said that Paravacini's report is ``subject to substantial and material changes including the reduction or elimination of `reserves.' ''
The 8-K also warned that Golden Eagle:
* Has no experience operating large mines.
* Lacks capital to mine its property.
* Has not filed audited financial statements, including its 1997 annual report and its 1998 quarterly reports, because of accounting difficulties.
* Is considering a secondary stock offering of up to 10 million shares to raise money for open-pit mining.
Turner said Golden Eagle's 8-K report is not an about-face.
``We have our own beliefs, and we stated them in the May 22 press release,'' he said. ``We know what Paravacini said, but we can't ensure what another firm will find.''
Meanwhile, geologists eye Golden Eagle's claims with a heavy dose of skepticism.
``They've drawn a very large conclusion with limited data, and that's pretty bold,'' said Leigh Freeman, president of Orvana Minerals Corp., a Canadian-based company with offices in Denver. ``If their conclusions are accurate, it would be the largest gold deposit in the world.''
Freeman said a claim of 157 million ounces would have to be based on several thousand samples to be credible. Golden Eagle's find was based on 844 bulk samples and 2,900 assays.
Meanwhile, the largest gold mine in Bolivia produces only about 300,000 ounces of gold per year from a proven reserve of about 5 million ounces, Freeman said. And Newmont Gold Co., the largest gold mining company in North America, boasts gold reserves of only 53 million ounces worldwide.
``There simply hasn't been enough work done,'' said Ted Worthington, a geologist and reporter for The Northern Miner, a Canadian trade publication with offices in Denver.
In its June 8-14 edition, The Northern Miner analyzed Golden Eagle's claims and found them questionable.
``We found the size of the resource hard to credit and one of the reports that defined it less than convincing,'' it said. ``Your caution about this company is well-advised.''
CAPTION(S):
Color Photo
Terry Turner.