Placer Dome stays litigation, files separate Pipeline suit

A subsidiary of Placer Dome (TSE) voluntarily stayed a legal action it began in Reno, Nev., against Hanson Natural Resources, doing business as Gold Fields Mining of Denver.

The dispute between the two mining giants involves the Pipeline gold discovery made by Placer Dome on its 60% owned Cortez joint venture property in Crescent Valley, Nev.

Placer Dome said the stay would continue until a related federal district court action filed by Gold Fields in Denver is resolved. In this litigation, Placer will argue that all litigation and disputes over the Pipeline discovery should be resolved in federal court in Reno.

Consistent with this position, the Placer Dome subsidiary then filed a separate suit in Reno against Hanson and its three corporate partners, one of which is Gold Fields Mining.

This suit asserts claims for breaches of contracts and for a declaration that Hanson and its partners have no rights or claims against Placer Dome arising in any manner from the Pipeline discovery or any exploration activity in the Crescent Valley.

The suit alleges that Hanson and its partners interferred with Placer Dome’s rights and prospective economic advantage arising from the Pipeline discovery. The suit also alleges that Hanson and its partners “defamed and disparaged” Placer Dome’s business reputation, “and abused the legal process in connection with a separate action in federal court in Denver.” Placer Dome also filed suit in Reno against ECM, the lessor of certain mining claims which it holds under lease as manager of the Cortez Gold Mines joint venture. These claims were previously held under lease by a subsidiary of Royal Gold (NASDAQ).

This suit alleges breaches of contract and seeks a declaration that ECM has no rights or claims against Placer Dome or the Cortez joint venture “arising in any manner from the Pipeline discovery.”

The companies challenging Placer Dome all allege that their agreements are void because Placer Dome did not disclose certain facts relating to ground now containing portions of the Pipeline discovery.