Silverspar directors face legal hearing

The British Columbia Securities Commission (BCSC) has issued a notice of hearing against several former directors of Silverspar Minerals (SLS-V).

The commission outlined several allegations involving Peter Fox, owner of Fox Geological Consulting, and Jan Van der Weij and John Fisher. All were directors during the period June 1993-May 1995.

It is alleged that Fox and Van der Weij failed to disclose a number of material facts in a May 1994 prospectus, and that one of the respondents engaged in insider trading.

The company is alleged to have misrepresented that it owned a West Kentucky mineral property, mill and concentrator, when it did not own them; nor did it have the money to acquire the property. The BCSC also claims that Fox knew that exploration results did not warrant developing the property, that the company did not have enough money to exercise the option, and that it had spent the offering proceeds in a manner not disclosed in the prospectus.