Aur says it is suing both parties for breach of contract following an agreement among the three companies related to the proposed acquisition of Louvem by Aur.
Aur reported in early March it had a deal to acquire about 65% of the common shares of Louvem for $8.3 million, the purchase including about 8.4 million shares held by St. Genevieve.
The Aur offer was rejected by the boards of directors of Louvem and St. Genevieve later that month.
Also being sued by Aur is Cambior (TSE), the lawsuit related to the Louvem agreement.
After the Aur offer was terminated, Cambior entered into an agreement-in-principle to buy a 50% interest in Louvem’s Chimo gold mine near Val d’Or, Que., for $4 million. The mine has been undergoing shaft sinking and underground development work, and the Cambior deal calls for financing to be made available to Louvem. Under the agreement, Cambior would become mine manager.
Louvem recently announced that Pierre Gauthier, chairman of St. Genevieve, has replaced P. A. Lacroix as president of Louvem. Lacroix remains a director.
Meanwhile, trading in the shares of Louvem and St. Genevieve on both the Montreal and Toronto stock exchanges remains suspended. The halt in trading arose over test results from a tailing recovery process used on tailings at the Louvem-owned Manitou mill near Val d’Or.
A report is awaited by the Centre de Recherches Minerales in Quebec City, which has been performing tests on the tailings.
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