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Ontario gold play on the radar after 24-year legal battle ends

Peter Kennedy Peter Kennedy, Stockhouse Featured Writer
2 Comments| March 26, 2015


Aside from some major discoveries down the years, the Canadian mining scene has long been known for its epic lawsuits.

Martini-swilling lawyers, who specialize in this area, will fondly recall the Lac Minerals  v International Corona Resources trials, which also kept newspapers busy in the late 1980s.

But for shear longevity, even that one was outstripped by a lesser known legal battle that stalled exploration at another Ontario gold project for 24 years.

By the time the Ontario Court of Appeal issued a decision in February 2015, one of the key players –an investor named Heinz Kraushaar –  had died, while the two main protagonists – piano-playing Timmins promoter Robert Platt, and Kitchener, Ont. Businessman Jacobus Hanemaayer -- were getting on in years and in poor health.

The lawsuit launched by Hanemaayer in 1990 centred on allegations that Platt had used funds intended for an industrial minerals project near Thunder Bay to finance exploration at a gold project located in the Swayze Greenstone Belt southwest of Timmins, one that is now held by Richmond Minerals Inc. (TSX: V.RMDStock Forum).

Now that it’s over, Richmond intends to resume exploration on the Ridley Lake gold project.

Gold exploration there dates back to 1932 and since the property is in the vicinity of a gold find that recently prompted Goldcorp Inc. (TSX: T.GStock Forum) to launch a $526 million takeover bid  for Probe Mines Ltd. (TSX: V.PRBStock Forum), exploration at Ridley will be closely watched.

“It’s on everybody’s radar screen now,’’ said Randy Salo, a Timmins prospector who works for Rock n Roll Prospecting Inc.

Salo says exploration crews will have access to new technology that has been developed since work was halted by the lawsuit  in 1990. “Who knows what they will find,’’ he said.

Richmond owns 50% of the central core of 35 mining claims, and 100% of the surrounding 115 mining claims and 44 claim units.

An outfit named All-Terrain Track Sales and Services Ltd. owns the remaining 50% interest in the core claims.

Richmond says it has signed a memorandum of understanding with local First Nation Communities and has now applied for an exploration permit for its 100%-owned claims.

It also said it intends to mount a substantial drilling program at the Ridley Lake Property.

A NI 43-101 compliant technical report dated September, 2014 is recommending, that exploration crews embark on a two-stage exploration program. Phase I, would entail geophysics and some drilling, at a cost of $220,000.

Phase two would see drilling on other targets on the property. It would cost about $500,000.

As the local prospecting community awaits further developments, Richmond is trading at 6.5 cents, leaving a market cap of $2.1 million, based on 32.5 million shares outstanding. The 52-week range is 12 cents and 2.5 cents.



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Comments

Johnny881
v.RRS moving higher. Very undervalued.
(0)
March 28, 2015

NycePrice
EHT.v Growth Investment Wrapped in a Value @ a Huge Discount. Profitability by Q3 of 2015, says management, and a forecast of $40m in revenue for that year – which would be 4x Higher than the current market cap. Stock has traded north of a buck in the last few months, but a rough market and a relatively new story has this one now at $0.20 Get it on your watchlist – the next big deal they sign could Put EHT on the Radar in a Big Way. Trading @ a Level beyond what makes cents.
(0)
March 28, 2015

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