European Gold Resources (GAL-V) has dropped its claim for damages against Tournigan Gold (TVC-V) after that company agreed to forfeit any interest in, or to, the Omagh gold project in Northern Ireland.
On Feb. 20, 2004, EGR filed a claim against Tournigan in the Supreme Court of British Columbia, claiming damages arising from Tournigan’s assertion that it had a claim to Omagh. Tournigan said EGR was claiming a loss of $47,100 in transaction costs, and other unspecified losses, after a proposed $550,000 financing with Canaccord failed owing to Tournigan’s claim of a right on the property.
EGR’s claim also sought damages for wrongful interference with economic interests, special damages and punitive damages. Tournigan filed a counterclaim for an order that EGR honour the existing letter of agreement to acquire the Omagh property.
The whole thing began in September of 2002, when EGR granted Tournigan an option to take up to a 75% stake in Omagh by funding exploration, feasibility, and development work. In late February of 2003, Tournigan said it submitted a finalized formal option agreement to EGR, but EGR countered that a definitive agreement had not been finalized, and that negotiations had closed.
Work by Rio Tinto (RTP-N) in 1985 outlined at least 15 mineralized structures on the eastern third of the 189-sq.-km project. Based on trenching and 41 diamond drill holes, the Kearney structure has an independently estimated resource of about 300,000 oz. of gold at an average grade of 7 grams gold per tonne.
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