According to a notice from partner TVX Gold (TSE), Pronto Explorations (TSE) is in default of joint venture payments totalling $613,942 — Pronto’s share of expenses for the Wilanour property at Red Lake, Ont.
To prevent any reduction of its interest in the property, Pronto says it is considering legal action against the larger company on the grounds of certain alleged breaches of contract by TVX.
Pronto could lose as much as 6.76% of its 12.5% interest in Wilanour as a result of the missed payments. The property is adjacent to the old Cochenour-Willans mine property, where Pronto, TVX and Wilanour Resources (TSE) have spent more than $9 million on exploration over the past few years.
Meanwhile, TVX has reported first-quarter earnings of US$1.4 million (one cent per share) on gold equivalent production of 55,000 oz. Cash costs dropped to US$237 per gold equivalent oz. as production increased at Casa Berardi Ouest and at the company’s three Brazilian mines.
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