U.S. SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No. 15793 / June 29, 1998

     SECURITIES AND EXCHANGE COMMISSION v. PHOENIX METALS U.S.A. II, INC. and
     ROBERT F. FLAHERTY, Civil Action No. CV-97-7153-SVW(AJWx) (C.D. Cal.)

          The Securities and Exchange Commission ("Commission") announced that
     the Honorable Stephen V. Wilson, United States District Court Judge for the
     Central District of California, entered a final judgment on May 28, 1998,
     in the above-referenced action ( Final Judgment ) which completed the
     litigation of this action.  The Commission s Complaint alleged that Phoenix
     Metals U.S.A. II, Inc. ( Phoenix Metal ) and Robert F. Flaherty
     ( Flaherty ) made material misrepresentations to investors in connection
     with the offer and sale of cinder ore investment contracts and the stock of
     Phoenix Metals.  In the Complaint, the Commission sought a permanent
     injunction, disgorgement and an accounting against Phoenix Metals and
     Flaherty.  Phoenix Metals and Flaherty previously consented to the entry of
     a judgment of permanent injunction, without admitting or denying the
     allegations in the Complaint, which enjoined them from future violations of
     Section 17(a) of the Securities Act of 1933 [15 U.S.C.  77q(a)], Section
     10(b) of the Securities Exchange Act of 1934 [15 U.S.C.  78j(b)] and Rule
     10b-5 thereunder [17 C.F.R.  240.10b-5].

          The Final Judgment did not require Phoenix Metals and Flaherty to pay
     disgorgement or prejudgment interest thereon based upon Phoenix Metals  and
     Flaherty s representations that they subsequently spent that sum in
     purchasing and operating the Phoenix Metals refinery.

























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