Missed Payment May Force Resolution at Dome Mountain

After confirming that an important March option payment was missed because of an “oversight” on Total Energold’s part, Michael Callahan, president of Canadian- United Minerals (VSE), said the underlying vendors used the bargaining chip to force the companies back to the negotiating table.

As it stands now, and after Teeshin Resources (VSE) lost its interest late last year for failing to meet certain exploration commitments, Total Energold has 70.5% while Canadian-United holds the remaining interest. Dome Mountain is reported to have mineable reserves totalling 319,280 tons at 0.37 oz gold a nd 2.0 oz silver.

Teeshin, however, is seeking damages in excess of $15 million against all other parties involved in the project, citing breach of contract, breach of fiduciary duty, negligence, conspiracy and repudiation. The company also filed a $6.5- million lien against the property, representing the amount it spent on exploration and development.

Callahan told The Northern Miner that the underlying vendors, collectively holding a 5% net smelter royalty, are not interested in revoking the interests of any of the parties but simply want to get the project back on track.

“They are convinced there is economic ore there and they want to get the dispute settled quickly so the project can go into production,” he said.

At press time Callahan said some progress was being made. “We expect to have some kind of outcome within the next several weeks.”

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