The Ontario Superior Court of Justice has awarded junior explorer Kinbauri Gold (YKB-V) compensatory damages of $1.7 million, plus prejudgment interest and costs, in relation to a failed 1990 merger agreement between it and Iamgold‘s (IMG-T) private predecessor company.
Kinbauri had claimed compensatory damages of just under $8.2 million, plus $416,000 for costs and expenses. A further claim of $2 million worth of punitive damages was dismissed completely by the court.
The award comes after the trial court judged in 1999 that Iamgold’s 1991 refusal to complete the merger to be in breach of the merger agreement. The Ontario Court of Appeal sustained the trial verdict, and the Supreme Court of Canada refused to hear Iamgold’s subsequent appeal.
Iamgold’s vice president and general counsel, Larry Phillips, said in a prepared statement, “This has been a long and difficult process for the company and our shareholders. Although the damage award is a significant amount, it is far less than the amounts claimed by Kinbauri throughout the hearing on damages. We will be reviewing the Reasons for Judgment with our litigation counsel in order to determine the necessary steps to finally conclude this matter.”
In early trade in Toronto on Dec. 24, Iamgold’s shares were off 24 or about 3% at $7.35. Kinbauri’s shares were unchanged at 20 in Vancouver.
Be the first to comment on "Kinbauri wins damages"