Teddy Bear Valley Mines (CDN) has reached a settlement with a former director and his company, Card Lake Resources (CDN), over five patented claims in Holloway Twp., Ont.
Under the settlement, Teddy Bear will receive three of the five claims, while Card Lake will retain two. There will be no cash payments and each party will bear their own legal costs.
The five claims are along strike and to the east of the Lightning gold zone, where Hemlo Gold Mines (TSE) and Freewest Resources (TSE) have outlined probable and possible reserves of 5.25 million tons grading 0.24 oz. Although the zone was originally thought to plunge in the direction of the disputed property, recent drilling suggests otherwise.
Legal wrangling over the property dates back to 1986, when Teddy Bear claimed that its former director had acquired the property “improperly” for personal benefit. The company launched a lawsuit, seeking rights to the claims and damages in the amount of $500,000. Card Lake retaliated by filing a counterclaim for damages totalling $250,000.
In an unrelated development, the Ontario Securities Commission has been investigating the details of Teddy Bear’s 1984 share consolidation. Although the commission has decided not to take further action at this time, Teddy Bear says there is no assurance the investigation will not resume at a later date.
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