Cash-strapped Abermin (TSE) recently announced bankruptcy under provisions of the Bankruptcy Act with Deloitte & Touche appointed as trustees. Company management had attempted for some time to refinance and restructure the company in order to continue exploration and development of various North American properties. Although some progress was reported in this regard, Abermin said the assignment into bankruptcy became “unavoidable” after its financial resources were exhausted.
Abermin was also looking to continue its legal dispute with Granges (TSE) and others arising from the ill-fated Tartan Lake gold mine joint venture in Manitoba. The mine closed after a short and unprofitable operating run, and Abermin is seeking recession of the joint venture agreement, the return of $17.6 million allegedly paid to Granges under the agreement, and damages. Granges has filed a defence and counterclaim.
The trial is scheduled to begin in the British Columbia Supreme Court on Nov. 5. Murry Carle of Deloitte & Touche told The Northern Miner that the bankruptcy proceedings will not disrupt the forthcoming litigation.
“The lawsuit will definitely continue,” he said.
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