Post by Zoinkers on Sept 15, 2006 4:00:49 GMT -5
Shore says De Beers case over Fort a la Corne joint venture has ended
Tue Aug 22, 3:07 PM
SASKATOON (CP) - Shore Gold Inc. (SGF.TO) says the legal action by De Beers Canada Inc. (NASDAQ:DBRSY) against Shore and three other defendants over the Fort a la Corne joint venture has been dismissed with everyone's consent.
Shore Gold said this puts an end to the legal wrangling over the joint venture and keeps in place a voting agreement between Shore and Cameco Corp. (CCO.TO).
Despite the good news, Shore Gold shares slipped nearly four per cent, down 22 cents to $5.70 in afternoon trading on the Toronto stock market.
Kenneth MacNeill, Shore Gold's chief executive, said Tuesday "this dismissal puts an end to any potential appeal by De Beers to the Supreme Court of Canada and means that the voting agreement has been confirmed as a valid agreement by the courts."
"With this litigation behind us, we can now focus on working with our joint-venture partners to maximize the potential of the FALC JV Project and the Fort a la Corne region as a whole," MacNeill said.
In May, a Saskatchewan court dismissed an appeal by De Beers Canada that sought to overturn a Court of Queen's Bench ruling upholding the voting agreement.
Diamond miner De Beers had been locked in a legal spat with its joint-venture partners, which include Shore Gold and Cameco. The key issue was an agreement between Shore Gold, which owns 42.245 per cent of the joint venture, and Cameco, which controls 15.51 per cent, to vote together on operational issues.
De Beers went to court asking to have the arrangement, which involved a $10-million payment by Shore to Cameco, declared invalid. The Court of Queen's Bench dismissed the De Beers claims, awarding costs to Shore Gold and Cameco.
Shore Gold acquired its interest in Fort a la Corne with its takeover of Kensington Resources Ltd. late last year. The property is in a district east of Prince Albert, Sask., which is regarded as one of the world's most promising areas of diamond-bearing kimberlites.
The joint-venture area is next to Shore's Star diamond project.
Tue Aug 22, 3:07 PM
SASKATOON (CP) - Shore Gold Inc. (SGF.TO) says the legal action by De Beers Canada Inc. (NASDAQ:DBRSY) against Shore and three other defendants over the Fort a la Corne joint venture has been dismissed with everyone's consent.
Shore Gold said this puts an end to the legal wrangling over the joint venture and keeps in place a voting agreement between Shore and Cameco Corp. (CCO.TO).
Despite the good news, Shore Gold shares slipped nearly four per cent, down 22 cents to $5.70 in afternoon trading on the Toronto stock market.
Kenneth MacNeill, Shore Gold's chief executive, said Tuesday "this dismissal puts an end to any potential appeal by De Beers to the Supreme Court of Canada and means that the voting agreement has been confirmed as a valid agreement by the courts."
"With this litigation behind us, we can now focus on working with our joint-venture partners to maximize the potential of the FALC JV Project and the Fort a la Corne region as a whole," MacNeill said.
In May, a Saskatchewan court dismissed an appeal by De Beers Canada that sought to overturn a Court of Queen's Bench ruling upholding the voting agreement.
Diamond miner De Beers had been locked in a legal spat with its joint-venture partners, which include Shore Gold and Cameco. The key issue was an agreement between Shore Gold, which owns 42.245 per cent of the joint venture, and Cameco, which controls 15.51 per cent, to vote together on operational issues.
De Beers went to court asking to have the arrangement, which involved a $10-million payment by Shore to Cameco, declared invalid. The Court of Queen's Bench dismissed the De Beers claims, awarding costs to Shore Gold and Cameco.
Shore Gold acquired its interest in Fort a la Corne with its takeover of Kensington Resources Ltd. late last year. The property is in a district east of Prince Albert, Sask., which is regarded as one of the world's most promising areas of diamond-bearing kimberlites.
The joint-venture area is next to Shore's Star diamond project.