An out-of-court settlement between
Exall will retain a 52% ownership in the mine, as well as operatorship.
The new split reflects existing capital contributions from the two companies, which had been locked in a dispute over ownership of the mine since 1997. During the dispute, ownership was split 65.5/34.5 between Exall and Glimmer, respectively.
The dispute arose as a result of dilution provisions in the option agreement between the two companies, to which Exall had acceded following its 1996 purchase of an interest held by Hemlo Gold Mines. Exall claimed Glimmer had failed to make payments under the agreement and that Glimmer’s ownership should be diluted. Glimmer counter-claimed that Exall had failed to contribute its share of funds to the project.
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