Cal Graphite, Takla settle litigation

An agreement to settle a lawsuit between Takla Star Resources (ASE) and Cal Graphite (VSE) has been reached, the companies report.

However, Takla says it will continue its lawsuit against E.J. Blanchard, a Cal Graphite director, and others.

The dispute centres on a graphite property in central Ontario north of Huntsville which Cal Graphite placed into production. Takla’s statement of claim (T.N.M., Jan. 13/92) alleged the breaching of duties owed to it regarding certain claims sold to Takla (then known as The Graphite Corp.) in 1983 by a company partially owned by Blanchard.

The agreement with Cal Graphite calls for Takla to receive 500,000 common shares and warrants to purchase an additional 150,000 shares of Cal Graphite.