Granges granted security for costs in Abermin lawsuit

The Supreme Court of British Columbia has ruled in favor of Granges (TSE) and others in their bid to have Abermin (TSE) post security for costs in the ongoing litigation over the Tartan Lake gold mine joint venture in Manitoba. The amount to be secured is about $475,000, although this may be increased by the court. Granges said two-thirds of the amount must be posted within 14 days “or the action will be stayed.”

Abermin is involved in a lawsuit against Granges, Kilborn Engineering and others over the Tartan Lake mine which closed after a brief and unprofitable operating run. The main lawsuit is scheduled for November of this year.

Granges’ recent bid to have Abermin post security for costs was initiated in view of the fact that Abermin recently assigned itself into bankruptcy. Abermin’s main creditors and financiers for the Tartan mine are CSA Management and Goldcorp Investments.

Granges will now be seeking an early date for another hearing in which it will seek the removal of the garnishing order against it in the amount of $17.6 million plus interest.