Delgratia signs deal to settle lawsuit

Delgratia Mining (DGRTF-OTC) has reached a tenative settlement that would put an end to class-action lawsuits filed against the company after a salting scandal at the Josh property in Nevada.

Final approval is subject to a number of conditions, including regulatory and shareholder approval and the signing of a definitive agreement. The proposed settlement covers Delgratia, Geoff Courtnall, Patrick Furlong, Kyle Washington, Terry Alexander, David Manning and Erick Lavarack. It does not mention former president Charles Ager, who sold the property to the company and managed exploration programs at Josh.

The terms of the tenative agreement call for Delgratia to pay reasonable expenses (but not legal fees) of up to US$500,000. The expenses were incurred by plaintiffs in connection with the conduct of the class actions.

Upon final approval, the company will issue 2.5 million shares.

Eric Lavarack, who took over as president after Ager stepped down, says the settlement is the right thing to do under the circumstnaces. “[It] gets this behind us and allows us to dedicate our resources and managements’ time fully to adding value for the company’s shareholders.”