Metalore Resources (TSE) has withdrawn its counter claim against Ontex Resources (ASE) in the wake of a lengthy court battle for control of the disputed Brookbank gold property in northern Ontario. The property, near Beardmore, Ont., has been estimated to contain preliminary reserves of 1.4 million tons grading 0.23 oz. gold per ton, based on drilling by Placer Dome (TSE) last year.
Metalore had been counter claiming against Ontex for damages in the amount of $45 million as well as a declaration that the latter company’s interest in the Brookbank property remains at a 10% net profit royalty. For its part, Ontex is seeking to have its original 100% ownership rights to the Brookbank property restored and has accused Metalore of acquiring control of the claims improperly.
Withdrawal of the Metalore counter claim comes on the heels of a 2-month trial heard in the General Division of the Ontario Court by Justice Montgomery. A final judgment in the case is still awaited and may come early in the new year.
At the conclusion of the trial this month, shares of Ontex were trading the $2 level, while shares of Metalore had fallen to a low of $13 within their 52-week trading range of $12-29.50
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