Granges to fight Abermin lawsuit

A trial date of Nov. 5 has been set in the Supreme Court of British Columbia for a $17.6-million lawsuit by Abermin (TSE) against Granges (TSE). Abermin is Granges’ joint venture partner at the Tartan Lake gold mine in Manitoba where mining operations were suspended late last year by Granges because of operating problems.

Abermin is seeking recession of the joint venture agreement, the return of about $17.6 million which it said it had paid Granges under the agreement, and compensation for damages.

Granges in turn has filed a defence and counterclaim denying any liability to Abermin. It is also seeking a declaration that the participating interest of Abermin be reduced and its interest be increased, or alternatively, judgment in the amount of Abermin’s unpaid share of costs and expenses.

In June, 1989, Abermin obtained a garnishing order whereby $17.6 million was deposited in a trust account. Granges said it will also be seeking to set aside the garnishing order, although no date for this hearing has been set.


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