Metalore files Brookbank appeal

Metalore Resources (TSE) has appealed to the Court of Appeal for Ontario in its bid to regain control of the Brookbank gold property which was awarded to Ontex Resources (ASE) following a trial last year. In a decision handed down in December, the trial judge rescinded two previous agreements between Metalore and Ontex and returned the Brookbank property to Ontex.

Metalore’s 13-page notice of appeal seeks to have the earlier judgment set aside and have Ontex’ original lawsuit against Metalore dismissed with costs.

“The trial judge erred in granting rescission of both the 1981 and 1983 agreements because of the presumed inability of the parties to work together when such grounds cannot justify a rescission,” says the appeal.

According to the appeal, “the trial judge wholly ignored the millions of dollars expended by Metalore and obtained from others for the benefit of the property.” The appeal also says the trial judge erred in returning the property to Ontex without granting Metalore reasonable compensation for its efforts, including the nine years of personal effort leading to the discovery by Metalore President George Chilian.

As well, the appeal says the judge erred in deciding that Metalore had committed fraud and was guilty of breaches of ongoing annual reporting obligations to Ontex under their 1981 agreement.

“The judge erred in his interpretation of the 1983 agreement in failing to recognize that it actually reduced the reporting obligations on Metalore by deleting any requirement for unrequested reports,” states the appeal. The judge also erred in treating the withholding of drilling results of the discovery as breaches of either of the agreements, according to the appeal.