Swiss bank case could force Comaplex to sell more assets

Under normal circumstances, recent assays from the Meliadine gold project in the Northwest Territories would have offered Comaplex Resources International (TSE) a financial shot in the arm. The announcement that partner Asamera Minerals (TSE) had pulled an impressive 42 ft. of grade 0.34 oz. gold per ton, while drilling 14 holes on a banded iron formation, may have sparked a substantial increase in the price of Comaplex shares.

Then buoyed by a higher market price, Comaplex executives could have gone looking for public financing.

But circumstances have been far from normal at the Calgary-based company since Switzerland-based Schaffhauser Kantonalbank of Switzerland revealed in November, 1987, that it owned 75% of Comaplex’ 5.6 million issued shares.

Because Schaffhauser allegedly did not disclose its position as required by Ontario securities rules, the Ontario Securities Commission immediately halted trading of Comaplex shares. They haven’t traded since.

According to an OSC spokesman, it could be next spring before the case is brought to trial and another two years before a resolution is announced and the shares resume trading.

Between now and then, the civil courts and the OSC must determine who is liable for any charges laid in this case. As the issues are considered too complicated for the OSC, the court must render a decision before the fate of Comaplex’ minority shareholders is spelled out.

Nancy Ross, the OSC lawyer handling the case, says the lengthy pre-trial phase isn’t particularly unusual given the complicated issues involved. Schaffhauser chief executive Kurt Amsler, for example, has maintained all along that the shares were acquired without his knowledge by one of the bank’s assistant manager.

The assistant manager is alleged to have collaborated with German promoter and former Comaplex director Ulrich Chmiel in making the purchases.

Throughout this activity, Comaplex has survived only because of its oil and gas revenues which are expected to increase to $2 million this year from $1.75 million in 1989. But due to an inability to raise money, Comaplex has been forced to dilute its interest in three mineral properties. It still holds 25% of Redfern Resources (TSE).

Even though Comaplex President George Fink considers the 720,000- acre Meliadine an important asset within Comaplex’ portfolio of properties, he says the company may be forced to dilute there too. “I don’t know if we can hang in for 50% on that one,” he said. “We are assessing the situation.”