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Abitibi Royalties files injunction against Osisko to enforce rights

Abitibi Royalties files injunction against Osisko to enforce rights

Photo by Reuters

30th May 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – TSX-V-listed Abitibi Royalties on Friday said that it had filed a motion with the Quebec Superior Court to grant an injunction against Osisko Mining to enforce its contractual rights under the joint venture arrangement to explore and develop a mining property known as the Malartic CHL prospect.

The Malartic CHL property, in which Abitibi Royalties owns a 30% free-carried interest, is located about 700 m east of Jeffrey zone, along the Cadillac-Larder Lake Fault, and is about 4.5 km from the Canadian Malartic mill complex. It comprises ten claim blocks situated just east of the South Barnett openpit, covering the historic Shaft zone, Mammoth zone and Jeffrey zone.

Abitibi said it asked the court to issue provisional, interlocutory and permanent injunction orders under Articles 110 and 751 et sequentia of the Quebec Code of Civil Procedure.

Osisko responded, saying that it had received the motion materials form Abitibi. The miner, which owns the Canadian Malartic mine, said that it would defend itself vigorously against the claims, which it considered “opportunistic and entirely without merit”.

The CHL prospect is undeveloped and includes the Jeffrey zone, which comprises a portion of Osisko's current reserve estimate, but is not considered material by Osisko. No mining permits are currently held on the CHL prospect and there are no known resources or reserves on eight of the ten claims of the prospect.

The motion is set to be heard on Friday.

Edited by Creamer Media Reporter

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