Post by
phoenix_trader on Apr 23, 2014 2:07pm
Boss gets more legal actions
2014-04-23 13:29 ET - Street Wire Shares issued 78,350,348 BPU Close 2014-04-22 C$ 0.195 by Mike Caswell Boss Power Corp. is a defendant in a lawsuit filed in the Supreme Court of British Columbia by Adam Travis, a geologist who claims he is entitled to part of the $30-million settlement the company received for its loss of the Blizzard uranium project near Kelowna. Mr. Travis says he staked the Blizzard claim in 2005 and then optioned it in return for a royalty and other payments. The option agreement specified that he was entitled to reasonable compensation if the property were expropriated, he claims. Mr. Travis's allegations are contained in a notice of claim he filed at the Vancouver courthouse on Tuesday, April 22. They come over two years after Boss Power agreed to accept $30-million from the government as compensation for the loss of the Blizzard project. The project had become worthless when the government enacted a ban on uranium exploration and development in 2008. Boss Power sued over the loss of the claims, and on Oct. 20, 2011, agreed to drop the lawsuit in return for the $30-million. Mr. Travis, however, claims that Boss Power still has an obligation to him. According to his suit, he staked the Blizzard claim in May, 2005, and one month later optioned the project in return for a royalty and other payments. The option agreement specifically stated that if the government were to expropriate the claim, he would be entitled to a "fair and equitable portion" of any payments. Boss Power assumed the obligations for his royalty on July 27, 2006, Mr. Travis says. As Mr. Travis sees it, the uranium ban that the B.C. government enacted in April, 2008, amounted to an expropriation of the Blizzard claim. That expropriation should have triggered his entitlement to a portion of any money that Boss Power received, he says. According to the suit, Mr. Travis notified Boss Power that he was relying on it to protect his rights and to make payments to him. In addition to Boss Power, the suit names the Province of British Columbia as a defendant. In legal terms, Mr. Travis says he is entitled to compensation from the government for the de facto expropriation. Alternatively, he is entitled to compensation from Boss Power because the company has been unjustly enriched in a manner that resulted in a deprivation to him, the suit states. Vancouver lawyer James Sullivan of Blake, Cassels & Graydon LLP filed the suit on behalf of Mr. Travis and a private company he controls, Cazador Resources Ltd. Boss Power and the Province have not yet responded.