A Spanish court of appeal has upheld a 1983 judgment awarding Mount Wright Iron Mines (OTC) nearly $3.47 million in back royalties owed to it by Exminesa, a unit of Cominco (TSE). Mount Wright is 48.3%-owned by LAC Minerals (TSE). The judgment represents royalties owed to Mount Wright for the period 1977-1988 at the Rubiales lead-zinc-silver mine in Spain. The total amount, less applicable Spanish withholding taxes, was previously deposited with a Spanish court.
In 1983, Mount Wright originally obtained a judgment against Exminesa in the Supreme Court of Ontario, entitling it to a 1% net smelter return from the Rubiales mine. In 1987, the company exe- cuted legal proceedings in Spain to pursue the collection of its royalty.
Exminesa continues to owe Mount Wright additional royalties for the period 1988 onwards. The company said it will continue to pursue collection of the additional royalties owed to it by Exminesa.
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