Timmins Nickel, Marshall in dispute

A dispute between Timmins Nickel (TSE) and Marshall Minerals (ASE) has closed the Carshaw mill in the Timmins, Ont., area.

Timmins Nickel says it received notice July 1 from Marshall terminating the lease on the mill for late payment of the June 15 lease charges. The company also says Marshall refused to accept a cheque July 1 covering the payment.

Without access to the mill, Timmins Nickel says it expects to lay off 48 mill and mine employees. The company says its Redstone nickel mine, which supplies feed to the mill, may be operated on a reduced basis, and possibly closed.

Timmins Nickel recently began legal proceedings against Habsburg Resources (VSE) over the operation of the Dome Mountain gold project near Smithers, B.C. Habsburg sent a default notice to Timmins Nickel and indicated it wished to terminate the joint venture agreement.

Habsburg launched subsequently a lawsuit against Timmins Nickel seeking an annulment of the joint venture agreement with Timmins Nickel.