Bre-X geologist set to begin defence in oft-delayed trial: Report
Wednesday, November 2 2005 - 06:14 AM WIB
Felderhof, who was chief geologist for Bre-X before its collapse in 1997, is eager to begin having his story told, lawyer Kevin Richard says.
"As Mr. Felderhof has always said, there are two sides to every story," Richard said. "And this is the opportunity to provide the other side of the story. Certainly we and Felderhof are looking forward to that opportunity."
The defence team, led by Toronto lawyer Joseph Groia, has not decided yet whether Felderhof will be called as a witness. Felderhof lives in the Cayman Islands and has only occasionally attended his trial since it began in 2000.
Felderhof faces eight criminal charges of insider trading and misleading investors. The Ontario Securities Commission has accused the geologist of improperly selling $84-million in Bre-X shares between April and October, 1996, while in possession of undisclosed information.
The Bre-X trial began five years ago, but was bogged down in a dispute between Groia and the former Ontario Securities Commission lead prosecutor, Jay Naster. Only two witnesses testified before the trial was suspended in 2001 after the OSC filed a legal motion seeking to remove the judge from the case. The motion was ultimately dismissed, and the trial resumed in 2004 with a new OSC prosecutor at the helm.
The prosecution wrapped up its case in September after 125 days of court hearings. The defence expects to begin Nov. 2 and complete its work by Dec. 22, Richard said.
The first witness to take the stand will be Phillip Hellman, a consulting resource geologist and geochemist from Australia. Dr. Hellman has 25 years experience in mineral exploration and the evaluation of mineral projects.
Other witnesses to be called by the defence include Ridwan Mahmud, an expert on Indonesian mining law, and geology expert Terry Leach. The defence will also call Paul Semple, a geologist who worked for Kilborn Engineering Pacific Ltd., which was hired by Bre-X in 1996 to do a feasibility study of its Busang gold site.
Richard said the defence also expects to call witnesses from Barrick Gold Corp., which at one point battled for control of the Busang mine site in Indonesia.
The notorious gold company collapsed in 1997 after another potential buyer exposed that it had found no gold on Bre-X's property in Busang, wiping out more than $5-billion in market value.
No charges were laid in direct connection with the fraudulent gold scheme. Felderhof is the only person to face criminal charges, and the allegations relate to his stock trading. Since the company collapsed, two senior Bre-X executives -- former chief executive officer David Walsh and geologist Michael de Guzman -- have died. (*)