Princeton clears $3.6-m legal tangle

Beleaguered Princeton Mining (TSE) has been released from a potential $6.3-million claim by the trustee for Cassiar Mining.

The claim relates to a previous financial transaction between Princeton and a subsidiary of Cassiar. The trustee of Cassiar had alleged the inter-company dealings were “reviewable transactions” under the Bankruptcy Act. In connection with the release agreement, Princeton has waived any claims as an unsecured creditor of the estate of Cassiar and released the province of British Columbia from claims in connection with the insolvency of Cassiar. Princeton reported a loss of $3.4 million for the third quarter ended Sept. 30 and a loss of $12.6 million for the first nine months of the year. The company’s Similco copper mine, near Princeton, B.C., produced about 14.1 million lb. copper-in-concentrate during the third quarter.