Legal proceedings by a company controlled by Lac Minerals of Toronto will soon be under way in Spain to collect a royalty owed to it by the mining firm Exploracion Minera Internacional Espana S.A. (Exminesa).
Mount Wright Iron Mines, 48.28% owned by Lac, has been granted permission by the Supreme Court of Spain to begin proceedings to collect a 1% net smelter return on the Rubiales lead-zinc mine operated by Exminesa in northwestern Spain.
The dollar value of the royalty was not available from Lac.
Exminesa, which also operates a second, newer lead-zinc mine in Spain’s northwest, is 48% owned by Cominco Ltd. of Vancouver.
Lac says that in 1967 Mount Wright sold its rights to mining concessions in Spain to Exminesa for cash and a 1% net smelter return from operations. Production at the Rubiales mine began in 1977.
Legal action was taken by Mount Wright, Lac says, to enforce payment of the royalty. Mount Wright received a judgment against Exminesa in the Supreme Court of Ontario in July, 1983, and proceedings were undertaken in September, 1986, to enforce the judgment against Exminesa in Spain.
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