Granges Exp. faces Trout Lake law suit

In its statement of claim, Oxford alleges that it held prior rights to buy the 9.167% stake in Trout Lake which Granges acquired from Outokumpu in March.

The deal increased Granges stake in the polymetallic mine to 29%. from 19.8%.

Operator Hudson Bay Mining (TSE) and Manitoba Mineral Resources also retain a 44% and 27% interest respectively in the Trout Lake operation which last year produced 31.5 million lb copper, 61.7 million lb zinc, 29,400 oz gold and 225,700 oz silver.

According to an Oxford Acquisitions President Robert Fasken, the company attempted to acquire Outokumpu’s stake in the operation for $9.25 million. At current metal prices, the Trout Lake interest would be worth about $1 million annually to Oxford.

The law suit is the second to be launched against Granges in less than eight months. The Vancouver company is also involved in a dispute with Abermin Corp. (TSE) over the Tartan Lake gold mine.

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