A Spanish court has awarded $2.6 million to Lac Minerals’ (TSE) 48% owned affiliate Mount Wright Iron Mines (CDN), as compensation for royalties earned from the Rubiales lead-zinc mine from July, 1977, to December, 1988.
The amount, net of Spanish withholding tax and costs, represents a 1% net smelter return on lead, zinc and silver produced at the Spanish operation, owned by Cominco (TSE) subsidiary Exploracion Minera Internacional Espana SA (Exminesa).
Following the judgment against Exminesa, Mount Wright said it has filed an additional claim for royalties it believes are owed to it for the period from January, 1989, to the end of last year.
The company says it will continue to file additional claims for royalties on an ongoing basis, while looking at the possibility of recovering all or part of the Spanish withholding taxes from the government of Spain. In addition, Mount Wright has filed a claim for the default interest accrued during the period from July, 1977, to December, 1988.
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