Settlements

International Shasta Resources Ltd. et al. [Sec. 144]

BCSECCOM #:
Document Type:
Sec. 144
Published Date:
1992-09-04
Effective Date:
1992-09-03
Details:

COR #92/290
International Shasta Resources Ltd. et al.(Re)
IN THE MATTER OF the Securities Act, S.B.C. 1985, chapter 83
AND IN THE MATTER OF International Shasta Resources Ltd.
AND IN THE MATTER OF Peter Hunton Blanchet
Order Under Section 144
J.C. Maykut, Q.C., D. Devine, E.L. Lien
September 3, 1992

ORDER:--  WHEREAS an Agreed Statement of Facts and Undertaking was executed by Peter Hunton Blanchet ("Blanchet") and the Superintendent of Brokers (the "Superintendent"), a copy of which is attached hereto as Schedule "A";

NOW THEREFORE the British Columbia Securities Commission, considering that it would be in the public interest to do so, orders, BY CONSENT, that:

1.pursuant to section 144(1)(c) of the Securities Act, S.B.C. 1985, c. 83 (the "Act") that the exemptions described in sections 30 to 32, 55, 58, 80 and 81 of the Act do not apply to Blanchet for a period expiring June 5, 1997; and
2.pursuant to section 144(1)(d) of the Act that Blanchet be prohibited from becoming or acting as a director or officer of any reporting issuer, or of any issuer which provides management and administrative, promotional or consulting services to a reporting issuer, for a period expiring June 5, 1997.
J.C. MAYKUT, Q.C.
Vice Chairman

D. DEVINE
Member

E.L. LIEN
Member


* * * * *
SCHEDULE "A"
AGREED STATEMENT OF FACTS AND UNDERTAKING

The following agreement has been reached between Peter Hunton Blanchet ("Blanchet") and the Superintendent of Brokers (the "superintendent"):

1.International Shasta Resources Ltd. ("International Shasta") is a reporting issuer incorporated in British Columbia under the Company Act, R.S.B.C. 1979, c. 59 (the "Company Act"), and its common shares are listed on the Vancouver Stock Exchange (the "Exchange");
2.Harco Management Ltd. ("Harco") was a private company incorporated in British Columbia under the Company Act but was struck from the register on June 15, 1990, for failure to make required filings with the Registrar of Companies.  Harco was controlled by Harry Claude Faulkner ("Faulkner") and its primary purpose was to provide management services to International Shasta;
3.Faulkner was the president and a director of International Shasta from September 2, 1966 to October 11, 1988 and was president and a director of Harco between January 26, 1981 and June 15, 1990;
4.Blanchet was a director of International Shasta from September 2, 1966 to October 11, 1988;
5.between May 1, 1987 and September 22, 1988, at the direction of Faulkner and with the acquiescence of Blanchet, International Shasta paid $71,462.85 to Faulkner and $157,409.02 to Harco (the "Payments");
6.Blanchet acknowledges that some of the Payments represented non-arms length transactions,
(a)for which no liability by International Shasta existed at the time of payment;
(b)for which no invoices were submitted to International Shasta;
(c)which were not authorized by the board of directors of International Shasta;
(d)which were implemented without the prior approval of the Exchange;
(e)which were material facts or material changes in the affairs of International Shasta which were not generally disclosed on a timely basis; and
(f)for which he failed to make adequate inquiries as to the circumstances set out in (a) to (e) above;
7.Blanchet acknowledges that the Payments have resulted in the wrongful conversion of assets of International Shasta for the benefit of Faulkner and Harco;
8.Blanchet acknowledges that, as a director of International Shasta, he failed to act in the best interests of International Shasta or to exercise the care, diligence and skill of a reasonably prudent person;
9.Blanchet hereby consents to an order of the British Columbia Securities Commission:
(a)under section 144(1)(c) of the Securities Act, S.B.C. 1985, c. 83 (the "Act") that the exemptions described in sections 30 to 32, 55, 58, 80 and 81 do not apply to Blanchet for a period of five years; and
(b)under section 144(1)(d) of the Act that Blanchet be prohibited from becoming or acting as a director or officer of any reporting issuer for a period of five years and that he be prohibited from becoming or acting as a director or officer of any issuer which provides management and administrative, promotional or consulting services to a reporting issuer for a period of five years; and
10.Blanchet waives any right he may have, under the Act or otherwise, to a hearing, hearing and review, judicial review or appeal related to, in connection with or incidental to this agreement and any related orders.
Witness:RAYMOND SMUK        )
505-1200  W. Pender )PETER HUNTON BLANCHET
Computer Consultant )
W.D. NESMITH
Superintendent of Brokers