Zone sued for claiming Labrador Trough ownership
2012-09-25 18:22 ET - News Release
Mr. Archie Boyce reports
ZONE RECEIVES MOTION TO INSTITUTE PROCEEDINGS REGARDING DISPUTE OVER LABRADOR TROUGH CLAIMS
Zone Resources Inc. has been served with, and named as one of the defendants in, a motion to institute proceedings in the Superior Court (civil division) of the Province of Quebec, District of Montreal, regarding a dispute concerning its interest in its Labrador Trough iron properties. In the motion, the plaintiff, Nord Mines Inc., alleges that the company does not have any legal basis or right to be listed as the registered or recorded owner of the claims. Nord also alleges that the company has engaged in conspiracy, conversion and unjust enrichment. The motion seeks an order that Nord is the registered owner of the claims, rectification to remove the company as the registered owner of the mining claims, and list Nord as the registered and recorded owner. It is suing for damages of $3-million. The company previously reported on Aug. 29, 2012, that it was notified by a third party of a potential dispute over certain claims pertaining to its Labrador Trough iron properties in the Nunivik region of Northern Quebec.
The claims being disputed are all fully registered in the name of the company with the Ministere des Ressources naturelles et de la Faune. The company has also reconfirmed with the vendor and the staker of the claims that the agreements pertaining to the claims in question remain in full force and effect. The company considers Nord's allegations against the company in the motion to be without merit, and the company intends to defend its position vigorously.
The number for the motion to institute proceedings is SCM 500-17-073817-127.
The company also reports that it has arranged a non-brokered private placement of up to 10 million units at a price of two cents per unit for total proceeds of up to $200,000, subject to the approval of the TSX Venture Exchange. Up to 10 million units will be issued as non-flow-through units, consisting of one common share and one-half of one non-transferable warrant. Each whole warrant will entitle the holder to purchase one additional common share of the company at a price of five cents per share in the first year and 10 cents per share in the second and final year from the date of closing.
The proceeds of the private placement will be used to maintain and preserve the company's assets and operations. Finders' fees, as allowed pursuant to the policies of the TSX Venture Exchange, may be payable in connection with the offering.
We seek Safe Harbor