Canadian junior miners hit by lawsuits
Dec 12, 2008 | 06:21 AM
Crystallex International Corp. has been slapped with two separate lawsuits over its stalled Las Cristinas gold project in Venezuela, heightening industry concerns that junior miners might be at increased risk of legal action from shareholders angered by the collapse in equity values this year.
One class-action suit, launched in New York on behalf of shareholders, claims that Crystallex made misleading comments about the potential for Las Cristinas to be approved by the Venezuelan government. It seeks unspecified damages.
The other suit, filed by Computershare Trust Co. of Canada, Toronto, on behalf of Crystallex noteholders, alleges that the company pursued Las Cristinas for too long and certain operations were mismanaged. It seeks to have the debt repaid at a price equal to 102 percent of the principal amount, in addition to accrued and unpaid interest.
"We will defend these actions vigorously," said Richard Marshall, vice president of investor relations at Toronto-based Crystallex.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.