even worser yetwhat is Les Kjoness going to do when this $600K bird comes home to roost?
$337,500 X 1.06 x1.06 x 1.06 x 1.06 x 1.06 x 1.06 x 1.06 x 1.06 x 1.06
x 1.06 = $604,411
An action has been commenced against the Company in the Supreme Court of British Columbia for
recovery of an alleged debt of $337,500 plus interest at 6% per annum, pursuant to a debenture
issued in 1996. This action has been commenced by Willis Associates Insolvency Services Ltd.,
Trustee of the Estate of Silver Peak Resources Ltd., a Bankrupt. The Board had determined that,
upon investigation, no cash consideration had been received by the Company for the private
placement of the debenture and the issuance of the said Debenture. As a result, this alleged
liability was removed form the Company’s balance sheet in the Company’s interim financial
statements for the period ended October 31, 2003. The current Board of Directors and
management which was not involved in the issuance of the debenture, has determined that there is
nothing owing under the debenture and that the claim is entirely without merit. Counsel has been
retained to vigorously defend this position.