Published: October 29, 2008
Decisions and Freeze and cease trade ordersSecurities

Montréal – At the request of the Autorité des marchés financiers (AMF), the Bureau de décision et de révision en valeurs mobilières (BDRVM) issued a freeze and cease trade order on October 8, 2008 against various companies and individuals related to Ressources minières Andréane inc.

Specifically, the BDRVM ordered Ressources minières Andréane inc., Minéraux Izza inc., HE-5 Resources Corporation as well as Denyse Raynault, Jacques Vallée, Serge Ollu, Yves Renaud and Marie-Hélène Frigon to cease any activity, directly or indirectly, in respect of a transaction in securities, in particular the shares of Ressources minières Andréane inc., Minéraux Izza inc. and HE-5 Resources Corporation.

The BDRVM also ordered the same companies and individuals to refrain from withdrawing funds, securities or other assets held in an account at a Royal Bank of Canada branch.

The BDRVM was particularly concerned about the following allegations made by the AMF:

  • Investors received securities of an issuer they had never heard of;
  • The distribution of shares in Andréane took place without a prospectus approved by the AMF;
  • HE-5 Resources Corporation and Minéraux Izza inc. made misrepresentations to investors;
  • HE-5 Resources Corporation has been in default on its obligations under U.S. laws since January 6, 2008;
  • Financial disclosure in accordance with the Securities Act in respect of Ressources minières Andréane inc., Minéraux Izza inc. and HE-5 Resources Corporation is not available;
  • To all intents and purposes, it is extremely difficult to contact Ressources minières Andréane inc., Minéraux Izza inc., HE-5 Resources Corporation and its officers.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.

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