Granges dispute remains unsettled

Legal proceedings against Granges (TSE) are unlikely to be settled in short order judging from recent action taken by plaintiffs Oxford Acquisitions.

Oxford, through a suit launched almost three years ago, is seeking damages against Granges and co-defendant Outokumpu Mines over the acquisition of a 9.167% interest in the Trout Lake mine in northern Manitoba. Granges purchased the interest from Outokumpu March 9, 1989, for $9.35 million, bringing its holding in the mine up to 29%. The balance of the underground zinc-copper-gold-silver mine is owned 44% by Hudson Bay Mining and Smelting and 27% by Manitoba Mineral Resources.

Oxford is seeking damages, including future profits and conveyance of the interest, but failed to meet a deposit deadline and is now attempting to obtain a court extension.

Under court order, Oxford was required to place the case on the trial list and to deposit over $200,000 in security for defendant costs by March 1. Oxford is seeking an extension on the deadline, alleging that it needs further documentation from Granges before proceeding. Oxford acknowledged that the documents provided by Granges indicate that even if a liability is established, it may not have suffered any damages.

Granges refused to provide the additional documents as requested, primarily on the grounds that they are irrelevant to the proceedings.