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by Stockwatch Business Reporter
The TSX Venture Exchange fell 1.2 points to 944.90 Monday. Gordon Chunnett and Harry Barr's Southern Sun Minerals Inc. (SSI) has already filed an information circular about its plan to acquire Rock Star Resources Inc. for its qualifying transaction. The companies signed a letter of intent just two months ago.
Southern Sun will issue 1.74 million shares for Rock Star, which has an option to buy the Galleon gold property in Alaska. After completing the acquisition of Rock Star, Southern Sun will then be responsible for paying the underlying owner of the Galleon property, Anglo Alaska Gold Corp., a total of $165,000 (U.S.) cash and 600,000 shares, due in stages. Southern Sun will also have to spend $400,000 (U.S.) on exploration by the end of 2016.
The information circular reveals that of the 1.74 million shares that Southern Sun will issue for Rock Star, 500,000 will go to each of Mr. Barr and Kevin Lawrence, both directors of Southern Sun and Rock Star, and another 500,000 will go to Roy Gould, a former vice-president and partial owner of a B.C. firm called United Capital Securities, which was an introducing broker. Mr. Gould resigned from United Capital in 2005, shortly after a U.S. judge ordered him to pay a $500,000 civil penalty and repay $13.84-million in illegal profits from the sale of unregistered shares of an OTC Bulletin Board listing, Starnet Communications International Inc., a company that in 1999 switched its promotion from operating several porn sites to Internet gambling. Mr. Gould was a consultant to Starnet. The stock traded up to $26 (U.S.) in July, 1999, giving the company a market valuation of $1-billion, but later that year it declined after the Vancouver police raided the company's headquarters and the homes of six directors in search of evidence of illegal gaming and pornography. In 2005, after Mr. Gould demonstrated his inability to pay the U.S. judge's fine, the judge waived the civil penalty and reduced the disgorgement to $1-million, or about half of Mr. Gould's net worth at the time. Unsurprisingly, Mr. Gould will not be a director or officer of Southern Sun.
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Harry Barr is not qualified to run a public company just look at the track record only puts money in his pocket and not to much of that latly by the look of things