RE:RE:Why Is VMS Ventures Being Sued By Vendor Of Previous Claims?Heres our company's response:
The facts are: There is a contract signed on December 2, 2008 between Dunlop, as vendor, and VMS as buyer (the "Dunlop Agreement)" selling to VMS certain mineral claims now comprising a portion of the Reed Lake Joint Venture with HudBay.
The HudBay Joint Venture provides to VMS a thirty per cent interest, carried to production, in the Reed Lake property or, at the election of VMS, a net smelter royalty.
The Dunlop Agreement clearly empowers VMS to negotiate and enter into the Reed Lake Joint Venture without any notice to, or interference from, Dunlop.
Dunlop is now attempting to force VMS to give up its thirty percent carried to production interest and opt for a two per cent Net Smelter Royalty in the Reed Lake property.
Given today's copper price and the detailed review of the technical information regarding the Reed Lake property now available, the value proposition clearly favors VMS maintaining the thirty per cent carried to production interest.
https://www.vmsventures.com/news/news-details/2012/VMS-Ventures-Inc-Letter-to-Shareholders-Regarding-the-Dunlop-Legal-Claim/default.aspx#sthash.OGPRS0nY.dpuf