Legal proceedings have been instituted by Exploration Orex (ME) against Onitap Resources (TSE), Narex Ore Search Consultants and the president of Onitap and Narex, Karl Naert, over the Goldboro gold property in Nova Scotia. Orex, which has been exploring the property and has a deal to acquire a 100% interest in the project, is seeking damages for alleged breach of trust, fiduciary duty and injurious falsehood.
Orex President Yves Morissette said that should the court not rescind the agreement of purchase and sale, his company is seeking the return of $1 million paid to Onitap as part of the purchase price and damages in the amount of $25 million related to exploration expenditures.
An agreement was drawn up in 1989 by the two companies for the purchase of the property by Orex for $8 million, the payment period to run until October, 1993. Prior to that agreement, Orex was working on an option to earn a 50% interest in the property from Onitap.
In addition, Orex is seeking an injunction restraining Onitap from enforcing a debenture securing the balance of the purchase price.
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