The Alberta Stock Exchange (ASE) has filed a notice of hearing against Naxos Resources and its president, Jimmy John.
Trading in the company’s shares has been halted since May 1996.
The notice alleges violations on the part of Naxos and John in connection with numerous press releases disclosing significant concentrations of precious metals on samples taken from the Franklin Lake property in eastern California. These results have not been replicated or verified by consultants retained by the exchange for that purpose.
The notice of hearing alleges that, over the past two years, Naxos and John issued numerous press releases disclosing significant concentrations of platinum group elements on samples taken from the property and that these were issued “without regard to whether such disclosure was accurate.” The releases also disclosed significant concentrations of gold and silver in samples using non-conventional fire-assay procedures. Subsequent attempts by Naxos to replicate such results using its own testing procedures were unsuccessful. Furthermore, the ASE says several standard fire-assay tests conducted by independent laboratories disclosed that the concentrations of gold on samples taken from the property were “significantly lower” than the previous results reported by Naxos. Additionally, there was no evidence of concentrations of platinum group elements present in the samples.
The ASE intends to seek an order delisting the securities of Naxos from the exchange, as well as an order prohibiting John from acting as a director, officer, insider, promoter or investor relations consultant for, or on behalf of, any company listed on the exchange.
Naxos denies the allegations. A date for the hearing has not yet been set.