Aber’s action is in direct response to a claim made by
Aber disputes Winspear’s claim, and has stated that on numerous occasions it verbally informed Winspear of its intention to pay its share of the costs. Aber says it is ready, willing and able to fund its share of the 1999 exploration program. Winspear’s position appears to be based on the assertion that notice of Aber’s intention to participate in this year’s program was not given in writing, and that written notice is required under the terms of the joint venture.
In its defense, Aber states in the court filing that the two companies “generally and at all material times dealt with each other in an informal manner in the context of their relationship under the joint venture agreement.” Aber argues that Winspear had previously waived the requirement of the formality to provide written notice of an intention to participate in an exploration program and had not notified Aber of its intention to insist on written notice with respect to the 1999 budget and exploration program.
Aber further states that a copy of the approved 1999 budget and exploration program was sent by Winspear, but it did not request that documents be signed in order to confirm Aber’s intention to participate in this year’s program.
Aber says it was approached by Winspear in February with a proposal to buy Aber’s interest in the Camsell Lake project for $50 million in cash and in shares of Winspear. Aber rejected the proposal.
In the meantime, both companies have plans to spin off their exploration assets into new companies. Aber, whose main asset is a 40% interest in the what will likely be Canada’s second diamond mine, the Diavik diamond project, plans to assign its exploration properties, including its 32.24% interest in Camsell Lake, to a new company called Aberex Minerals.
Winspear has proposed to create a separate company called Diamondex Resources to hold all of its early-stage exploration properties, plus $1 million in cash. Winspear will continue to hold its interest in Camsell Lake. For each share currently held, Winspear shareholders will receive 0.125 of a share of Diamondex. A shareholders meeting is scheduled for April 29, 1999, in Vancouver.
Exploration is in full swing at Snap Lake, 220 km northeast of Yellowknife. Winspear has successfully collected a 6,000-tonne-plus surface bulk sample of the NW dyke and transported it to a processing plant, which will undergo startup procedures in about three weeks. Carat valuation is expected to be available in the third quarter of this year. The bulk sample was excavated from two sample pits set 260 metres apart on the northwestern peninsula of Snap Lake. The sample areas are just east of where last year’s 200-tonne mini-bulk sample was collected.
As of March 23, a total of 51 holes had been completed on the NW Snap Lake dyke, raising to 125 the number of drill intersections recovered from the dyke in the past three years. The average downhole thickness of kimberlite in these holes is 2.57 metres. The true thickness is believed to be about 90% of this.
Drilling suggests the kimberlite dyke is thinning toward the southern and northwestern limits, with a somewhat thicker zone trending towards the northeast.
Twenty-one of the 51 holes drilled so far this year in 1999 were closely spaced and designed to define the bulk-sampling pits on the northwestern peninsula. An additional four holes were drilled to locate a possible bulk- sample site on the northern shore, while two other holes on the northern shore extended to 2,000 metres the north-south strike length of the dyke.
Apart from these holes, drill spacing is being conducted on a 200-metre grid, extending east from the northwestern peninsula. MRDI Canada, a division of H.A. Simons, is evaluating all drill data to determine if additional infill drilling is required to achieve feasibility standards for resource estimates. Core from all the holes will be analyzed for microdiamond content.
Be the first to comment on "Aber takes legal action against Winspear"