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Class action instituted against Canada Lithium to go to trial

28th August 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – The Ontario Superior Court of Justice has permitted a class-action lawsuit, initiated by Ontario-based Siskinds LLP against TSX-listed Canada Lithium for misrepresentation of mineral resources, to go to trial.

John Keyton and Hugh Latimer, on behalf of various shareholders, accused the lithium miner of supplying misleading information in an October 2010 resource statement and a January 2011 prospectus regarding the volume of mineralised ore and the grade of lithium at the company’s Quebec lithium project.

The plaintiffs were seeking the cancellation and refund of shares bought between October 28, 2010 and February 28, 2011 based on the resource statement.

The losses were allegedly the result of Canada Lithium’s March 2011 independent review of the mineral resource estimate for the lithium project, which identified geological modelling errors and led to a material reduction in the mineral resource estimate.

The company, along with deputy chairperson and CEO Peter Secker, president and COO Charles Taschereau, director and VP for explorations Mitchell Lavery and geologist Michelle Stone, who were also named in the lawsuit, would defend the allegations and denied that they would be proven at trial.

None of the allegations in the class action had been assessed or determined by the court.

The class action excluded the defendants and the standstill defendants, affiliates, officers, directors, senior employees, legal representatives, heirs, predecessors and successors of the company, besides others.

The action against standstill defendants Kerry Knoll, James Fairbairn, Sheila Pickens, Patrick Mohan, Robert Cudney, Ian MacDonald and Germaine Coombs was discontinued in 2012.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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