BCSC

Settlements

Canada Orient Resources Inc., et al. [Sec. 144]

BCSECCOM #:	Document Type: Sec. 144
Published Date: 1993-05-14	Effective Date: 1993-05-13
Details:

Canada Orient Resources Inc. et al. (Re)

IN THE MATTER OF the Securities Act, S.B.C. 1985, chapter 83
AND IN THE MATTER OF Canada Orient Resources Inc.
AND IN THE MATTER OF Joseph Ernest Hooi,
Robert Mah Shing Voong, Edward Clive Ashworth,
James Arthur Barnes and Donald Lynn Whorley

Notice of adjournment and order under section 144

J.C. Maykut, Q.C.

May 13, 1993

ORDER:-- WHEREAS ON April 14, 1992, under section 144(1) of the Securities Act, S.B.C. 1985, c. 83, the Superintendent of Brokers issued a notice of hearing to be held before the British Columbia Securities Commission to determine whether it is in the public interest to make orders under sections 144(1)(c) and (d) and section 154.2 of the Act against Edward Clive Ashworth and others based on the allegation that Ashworth and others, directly or indirectly, engaged in a scheme relating to a trade or acquisition of Canada Orient Resources Inc. securities when he knew or ought to have known that the scheme would perpetrate a fraud in connection with Canada Orient;

AND WHEREAS:

1.		on April 19 and 20, 1993 the hearing was held and was adjourned to April 29, 1993 with the consent of counsel for Ashworth;
2.		on April 29, 1993 an Agreed Statement of Facts entered into by Ashworth and the Superintendent, a copy of which is attached as Schedule "A" was introduced as evidence in the hearing; and
3.		on April 29, 1992 counsel for Ashworth requested an adjournment of the hearing to produce further evidence from Ashworth who was not in the jurisdiction;

NOW THEREFORE on April 29, 1993, the Commission, considering the evidence produced and submissions made by counsel for Ashworth and Commission staff and considering that it would be in the public interest to do so, ordered, that:

1.		the hearing be adjourned to June 7, 1993, at 10:00 a.m. at the B.C. Securities Commission, 7th floor, 865 Hornby Street, Vancouver, British Columbia;
2.		pursuant to section 144(1)(c) of the Act the exemptions described in sections 30 to 32, 55, 58, 80 and 81 of the Act do not apply to Ashworth for a period ending June 7, 1993, except that Ashworth may trade securities with the consent of and in the manner directed by the Superintendent.

J.C. MAYKUT, Q.C.
Vice Chair

* * * * *

SCHEDULE "A"

AGREED STATEMENT OF FACTS

For the purpose of dispensing with the necessity of proof, Edward Clive Ashworth ("Ashworth") agrees that the following facts are correct:

(a)		Canada Orient Resources Inc. ("Canada Orient") is a reporting issuer incorporated in British Columbia under the Company Act, R.S.B.C. 1979, c. 59, the common shares of which were listed on the Vancouver Stock Exchange (the "Exchange") until October 2, 1991.
(b)		Joseph Ernest Hooi ("Hooi") was the President, Chief Executive Officer and a Director of Canada Orient during the period from July 30, 1987 to April 12, 1990.
(c)		Robert Mah Shing Voong ("Voong") was a Director and Secretary and Treasurer of Canada Orient during the period from November 5, 1987 to April 12, 1990.
(d)		Ashworth was the President and Secretary of Ashworth Explorations Ltd. in 1989.
(e)		Janet Stritychuk-Hopkins ("Hopkins") was an employee of Ashworth Explorations Ltd. in 1989.
(f)		John Fleishman ("Fleishman") was an employee of Ashworth Explorations Ltd. in 1989.
(g)		Ashworth was the beneficial owner of:

(i)		Mineral claims in the Vancouver Mining Division, British Columbia, called the Lynx IV, Silver Bullet I, Silver Bullet II, and Camelsfoot ("Lynx Claims");
(ii)		Mineral claims in the Clinton Mining Division, British Columbia, called the Clover I, Clover II, Clover III and Hummingbird Lot 4815A, registered in the name of Fleishman ("Clover Claims"); and
(iii)		A mineral claim located in the Omineca Mining Division, British Columbia, called the Black IV Claim, registered in the name of Hopkins ("Black Claim").

(h)		Ashworth sold the Black Claim, the Clover Claims, and the Lynx Claims to Canada Orient. The terms of the sales were negotiated solely between Ashworth, Hooi and Voong.
(i)		The sale agreement between Canada Orient and Ashworth for the Lynx Claims, dated January 31, 1989, signed by Ashworth, Hooi and Voong, stated that for Ashworth's interest in the Lynx Claims, (subject to a 3% net smelter return to be retained by Ashworth) Ashworth was to receive 100,000 shares of Canada Orient ("Ashworth Transaction").
(j)		The sale agreement between Canada Orient and Fleishman for the Clover Claims, dated February 27, 1989, signed by Fleishman, Hooi and Voong, stated that for Fleishman's interest in the Clover Claims, (subject to a 3% net smelter return, retained by Fleishman) Fleishman was to receive $5,000.00 and 100,000 shares of Canada Orient ("Fleishman Transaction").
(k)		The sale agreement between Canada Orient and Hopkins for the Black Claim dated March 27, 1989, signed by Hopkins, Hooi, and Voong, stated that for Hopkins' interest in the Black Claim (subject to a 3% net smelter return, retained by Hopkins) Hopkins was to receive $5,000.00 and 100,000 shares of Canada Orient ("Hopkins Transaction").
(l)		On March 31, 1989, the Exchange issued a Notice stating it had accepted for filing a sale agreement whereby Canada Orient had acquired Ashworth's interest in four claims in the Clinton Mining Division, British Columbia, for the consideration of 100,000 shares of Canada Orient and Ashworth retaining a 3% net smelter return.
(m)		On March 31, 1989, the Exchange issued a Notice stating that it had accepted for filing a sale agreement whereby Canada Orient had acquired the Clover I, II and III, and Hummingbird claims in the Clinton Mining Division from John Fleishman for the consideration of 100,000 shares and $5,000.00 reimbursement of costs with Fleishman retaining a 3% net smelter return.
(n)		On May 17, 1989 the Exchange issued a Notice stating that it had accepted for filing a sale agreement whereby Canada Orient had acquired from Hopkins a property in the Omineca Mining Division, British Columbia, by issuing 100,000 of Canada Orient shares and paying $5,000.00 with Hopkins retaining a 3% net smelter return.
(o)		In the matter of the Ashworth transaction, Ashworth did not receive any shares of Canada Orient. At the time the sale agreement was reached between Ashworth and the principals of Canada Orient, Hooi and Voong, Ashworth knew and agreed with Hooi and Voong that all of the 100,000 shares to be issued were to be retained by Hooi And Voong.
(p)		In the matter of the Fleishman Transaction, Ashworth received from Hooi and Voong 10,000 shares of Canada Orient and an agreement to pay him the sum of $5,000.00. At the time the sale agreement was signed by Fleishman and the principals of Canada Orient, Hooi and Voong, Ashworth knew and agreed with Hooi and Voong that 90,000 shares of Canada Orient were to be retained by Hooi and Voong.
(q)		In the matter of the Hopkins Transaction, Ashworth received from Hooi and Voong 10,000 shares of Canada Orient and an agreement to pay him the sum of $5,000,00. At the time the sale agreement was signed by Hopkins and the principals of Canada Orient, Hooi and Voong, Ashworth knew and agreed with Hooi and Voong that 90,000 shares of Canada Orient were to be retained by Hooi and Voong.

DATED at the city of Vancouver, in the Province of British Columbia, this 27th day of April, 1993

KENNETH N. BALL
Counsel for EDWARD CLIVE ASHWORTH

JAMES W. WILLIAMS
Counsel for the SUPERINTENDENT OF BROKERS