The gloves are off again at Dome Mountain

This summer’s agreement resulted in Teeshin owning a two- thirds interest in the project and Canadian-United owning the balance. At a subsequent joint management meeting, the two companies approved an exploration program aimed at increasing the reserves on the deposit, near Smithers, B.C., from the present proven and probable 300,000 tons grading 0.355 oz gold and 2.34 oz silver.

Teeshin claims that Canadian- United failed to pay cash calls for approved project expenditures for July, August, September and October. Teeshin President Stafford Kelly says the joint venture agreement stipulates that under a default of payment Teeshin can purchase Canadian-United’s interest for 75% of the project’s appraised value, less any liabilities against the interest.

An appraisal of the project, being done by David Wahl of Derry Michener and Wahl, is expected to be completed before year-end. Should Teeshin accept the evaluation, Kelly said, the company would own 100% of the property early in the new year.

The joint venture agreement states that payment for the interest could be made by a 2-year non- interest bearing promissory note with certain subordinate provisions.

Canadian-United says it did not default on the provisions of the joint venture agreement. Director Terry Eldridge said the company paid all approved cash call payments but that Teeshin had not accepted the payments. He also noted that the company received several cash calls on unapproved expenditures for which it could not be held in default.

In any event, with Teeshin in control of the property and planning to go ahead with the acquisition of the remaining interest to the objection of Canadian-United, it could be another long battle.

]]>