Bre-X in meetings to resolve Busang dispute<\/p>\n
TORONTO (Reuter): Bre-X Minerals Ltd executives have been
\nmeeting in Toronto in an attempt to clear up questions over the
\nownership of its spectacular Busang gold discovery in Indonesia,
\na Bre-X spokesman said.<\/p>\n
Company president David Walsh and chief financial officer
\nRolando Francisco were "in Toronto resolving the problem," the
\nspokesman said over the weekend.<\/p>\n
Company officials would not say whether they were making
\nprogress.<\/p>\n
Bre-X stock rose C$1.80 in morning trading to C$21.70, with
\nmore than four million shares changing hands.<\/p>\n
The stock has taken a beating in the past week since news of
\nthe ownership dispute became public. Bre-X was trading at C$26.90
\nbefore the news broke.<\/p>\n
One of Bre-X's Indonesian partners is claiming up to 40
\npercent of the Busang discovery. Australia's Golden Valley Mines
\nNL is backing the Indonesian partner.<\/p>\n
Bre-X has said the partner has a right to only 10 percent of
\npart of the Bre-X property.<\/p>\n
The Indonesian government has delayed issuing a vital contract
\nof work to Bre-X until the parties settle their problems.<\/p>\n
Shares in Golden Valley fell A$0.002 to A$0.051 in trading of
\n5.8 million shares on the Australian Stock Exchange on Friday.<\/p>\n
Investors overreacted to the dispute, mining analyst Michael
\nFowler of brokerage Levesque Beaubien Geoffrion said in an
\ninterview.<\/p>\n
"I think the stock has been punished over-severely based on
\nall the hype coming from the media," Fowler said.
\n"The reality is, it's not as bad as the media make it to be."
\nHe said he expects a negotiated settlement soon.<\/p>\n
Fowler said he has seen nothing official to suggest the claims
\nfrom Golden Valley and the Indonesian partner are credible.<\/p>\n
"I would suggest they come with some of the documents," he
\nsaid. "It's put-up or shut-up time."<\/p>\n
But other analysts have said they do not think the blood
\nletting is over yet.<\/p>\n
Golden Valley told Reuters in Australia on Friday it was
\nprepared to take Bre-X to court in Canada if necessary.<\/p>\n
Golden Valley has no solid evidence, Bre-X spokesman Steve
\nMcAnulty said in an interview.<\/p>\n
The Busang property promises to be one of the world's biggest
\ngold discoveries, with almost 50 million ounces outlined so far.
\nAnalysts have suggested the property may contain up to 100
\nmillion ounces.<\/p>",
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