Handeni Gold sues Mkuvia JV partner
2012-02-24 14:17 ET - News Release
by Mike Caswell
Handeni Gold Inc., a Vancouver-based OTC Bulletin Board listing, has filed a lawsuit against its joint venture partner on the Mkuvia gold project in Tanzania, claiming that the partner has defaulted on property payments and owes $1.3-million. The suit seeks an order permitting Handeni to sell the property to third parties, plus payment of the outstanding amount.
The dispute is detailed in a brief notice of claim that Handeni filed in the Supreme Court of British Columbia on Thursday, Feb. 23. It names as a defendant Ruby Creek Resources Inc., a New York-based OTC-BB company that agreed to acquire 70 per cent of the Mkuvia property in November, 2009. The suit complains that Handeni did not receive full consideration for the property interest, which included the $1.3-million as well as four million Ruby Creek shares.
The problems with the agreement, as described in the claim, began on June 1, 2011, when Ruby Creek was to pay $450,000 to Handeni. According to the suit, Handeni did not receive the payment, and still has not received it. A further payment was triggered when Ruby Creek raised $4.6-million in a 50-cent financing that closed on Aug. 23, 2011. Handeni claims that upon closing of the financing Ruby Creek was to pay an additional $917,100. This amount remains outstanding as well, the suit states.
Handeni further complains that it has not received the four million tradable Ruby Creek shares that were to be issued under the agreement. It says that Ruby creek did issue the stock, but has refused to remove a trading restriction.
Handeni says that in the event of non-payment, the agreement entitles it to retain all payments and find another buyer for the property. The suit seeks court-ordered payment of the $1.3-million, an order removing the restrictive legend on the four million shares, plus an order stating that Handeni is entitled to market and sell the property.
Vancouver lawyer David Dahlgren of McMillan LLP filed the suit on the company's behalf. Ruby Creek has not yet filed a response.
Handeni, which recently changed its name from Douglas Lake Minerals Inc., closed Friday at 12 cent