Gold Standard sues Barrick for breach of fiduciary duty

Against the objections of Toronto-based Barrick and the other defendents in the case, a Utah court has allowed Gold Standard to include breach of fiduciary duty and misappropriation of confidential information in its complaint.

Gold Standard was a joint venture partner with Getty Oil at Mercur before the mine was sold by Texaco Inc. to American Barrick in 1985.

In a law suit filed in 1986 against Barrick, Texaco and Getty Oil, Gold Standard is claiming that an incomplete feasibility study conducted by Getty Oil resulted in the Utah company’s 25% interest being improperly converted to a 15% net profit interest.

Until last year, Mercur was the largest producer in Barrick’s portfolio of six gold mines. Located in Utah, Mercur produced 115,390 oz gold in 1988.

Despite Barrick’s claim that there is no merit to the case, Gold Standard has asked the court for an order imposing a constructive trust over, and requiring the defendents to surrender, all assets and value received through their involvement with the mine.

Potentially that could include Barrick’s Goldstrike mine in Nevada which is expected to produce almost one million oz gold by the early 1990s.

Still in the discovery phase, the law suit complaint by Gold Standard, is scheduled to be heard in a courtroom in Tooele Cty., Utah, beginning next February.

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