BioteQ Environmental Technologies Inc. (TSX:BQE), a leader in the treatment of industrial waste water, announces that it has commenced a legal action against NWM Mining Corporation ("NWM") and it has filed a Notice of Civil Claim with the Supreme Court of British Columbia. BioteQ seeks monetary damages for NWM's breach of a Termination, Consolidation and Reconciliation Agreement ("TCRA") between the companies dated June 12, 2009.
Under the terms of the TCRA, NWM agreed to purchase BioteQ's plant, located on NWM's Lluvia de Oro mine site in Mexico, on a lease-to-own basis. NWM was to begin making minimum monthly lease payments of USD $150,000 per month as of October 1, 2010 up to a total CAD $9.6 million. NWM would own the plant after all payments were made.
NWM has failed to make any monthly lease payments to date and are in default of the TCRA. BioteQ is seeking damages in the amount of the outstanding debt and all remaining lease payments due to BioteQ under the lease-to-own provisions of the TCRA, for a total of CAD $9.6 million plus accrued interest.
BioteQ is currently reviewing the impact of this legal action on its 2010 financial results.
Project History
SART (sulphidization-acidification-recycle-thickening) is an enabling technology for copper-complexed gold deposits. The presence of soluble copper can create a metallurgical interference in the recovery of gold from cyanide solution. By removing copper from the cyanide solution and regenerating it for re-cycle to the gold operation, SART can improve gold yields, significantly reduce processing costs, and enhance the environmental performance of the gold mining operation.
BioteQ designed, built and commissioned a SART plant in 2008, designed to treat copper-contaminated cyanide solution, for application at the Lluvia-Jojoba gold project located in Sonora, Mexico. The plant was subsequently sold to NWM under the terms of the TCRA as noted above.
In July 2008, NWM management provided written confirmation of the completion of construction of the SART plant. BioteQ then proceeded to commission the plant, as part of a process trial for the heap leach project. The plant operated successfully during the 2008 trial, reducing copper in the gold leach solution to below 50 mg/L in the discharge from the plant, and recovering dissolved copper as a high-grade copper sulphide concentrate. Over 20,000 pounds of dry copper concentrate was recovered containing 65 percent copper, which was sold to Trafigura.
By the end of 2008, the trial was complete, as reported by NWM. Operational responsibility for the SART plant was transferred to NWM in February 2009 on an "as is" basis, and as defined in the TCRA dated June 2009. Since that time, NWM has been developing the mine and heap operation and the SART plant has been idle. In August of 2010, BioteQ received notice from NWM alleging that the SART plant was not operational. BioteQ does not agree with this allegation and has initiated legal action to recover the lease payments, which were to commence in October 2010
Guess it's wait and see what NWM has to say in the "supposed" NR tomorrow.. gonna hold my shares, as alot of you others I'm sure will do too. Is obviouslly a small chance BioteQ could say pi$$ on it, maybe it's not worth the headache in legal battles... hence, saving themselves some legal costs in the process of not getting what they really want anyways!
time will tell...
Deer