Western Prospector files defence to lawsuit over Mongolian assets

Vancouver — Western Prospector Group (WNP-V) has filed a statement of defence in response to a lawsuit filed against the company and one of its directors by Maximum Ventures (MVI.H-V, MXRVF-O) alleging that certain Mongolian mineral properties were “wrongfully transferred” to Western Prospector, including a portion of the Saddle Hills uranium project.

Maximum claims that it was part of a reconnaissance program with Kenneth de Graaf, now a director of Western Prospector, and various other parties to acquire certain claims in Mongolia, and that it was intended to have the first right to acquire all or part of the now-disputed properties.

Maximum’s statement of claim seeks an order and a declaration that the Mongolian claims are “held in trust for Maximum,” disgorgement of all interests in and profits from the claims, damages, compensation and costs, among other things.

In a statement, Western Prospector president John Brock said the company’s statement of defence “categorically denies and refutes the allegations in Maximum’s statement of claim in a manner which clearly establishes that Western Prospector is the legal and beneficial owner” of a 100% interest in the properties.

Brock added that the statement of defence will provide “fundamental and independent support” for the company’s position, which will also rely on written representations made by Maximum in certain executed agreements, as well as the company’s own detailed documentation related to the properties.

Brock alleged that Maximum (and parties related to its lawsuit) “failed to contact us and knowingly stood by” while Western Prospector proceeded with various property acquisitions, raised more than $50 million of financing, and spent about $9.5 million on exploration.

Brock suggested that the company will rely on the doctrine of estoppel as part of its defence and broader efforts to have the case dismissed with costs, not only because of the alleged “unfair conduct” of Maximum, “but also because Maximum’s allegations are not supported by the facts, or in law.”