The definition of bre-x minerals Ltd’.
Bre-X Minerals Ltd. was a canadian gold exploration company that made one of the biggest mining scams and frauds in canadian history. Bre-x minerals was formed by former stockbroker David Walsh in 1988. In 1993 at the initiative of Walsh’s partner, geologist John Felderhof, the company started exploration of gold in the area of the Busang river in Indonesia, with geologist Michael de Guzman hired as exploration Manager. By 1996, the fiber-x was the assessment that the Busang property contained 47 million ounces of gold and the market capitalization of the company exceeded 6 billion.
The Scam unraveled quickly in March 1997, after de Guzman allegedly after falling from a helicopter over the Indonesian jungle, and soon after the potential of the Busang partnership project Freeport enrichment, stated that his examination revealed only a small amount of gold in the property. Bre-x plunged on the news and was expelled in may 1997, and in the process destroyed billions of dollars for their hapless investors, including Canada’s largest pension plans.
Breaking down the ‘bre-x minerals Ltd’.
GN-x fraud was committed the simple act of salting core samples with gold. With the death of Michael de Guzman in 1997 (under suspicious circumstances) and David Walsh, who died of a brain aneurysm in 1998, John Felderhof was the only remaining main character in this fiasco. While allegations of illegal insider trading were brought against Felderhof in 1999, he was acquitted on these charges in 2007.
One of the consequences of bre-x scandal was to strengthen regulation of the securities market in Canada. National instruments (Ni) 43-101 standards of disclosure for mineral projects after bre-x imploded in order to enhance the transparency of the extractive projects. Because many companies in Canada engaged in mining operations, it was deemed necessary the establishment of a regulatory authority geological practices.
Knowledge about fiber-x scandal lives in numerous books (one example: “fool’s gold”: the creation of a global fraud on the market) and even in the film, titled gold, was released in 2017.