More strife among Nunavik Nickel Mine partners

Minority partner Goldbrook Ventures takes Chinese partners, Canadian Royalties to court


The Nunavik Nickel Mine project has yet another legal hurdle to cross, following an April 19 announcement from Goldbrook Ventures Inc. that it’s filed a petition against its Chinese partners, Jien Canada Mining Ltd., Jilin Jien Nickel Industry Co., Jilin International Investment Ltd., and Canadian Royalties Inc.

Two years ago Jien Canada Mining Ltd. acquired 75 per cent of Canadian Royalties’s project shares in the Nunavik Nickel Mine project, while 25 per cent of the shares went to the Vancouver-based Goldbrook Ventures.

But since then, the relationship has become increasingly strained.

Last year, Goldbrook said its Chinese partners violated their partnership deal and started the first of three separate arbitration proceedings against the parent company of Jien Canadian Mining.

“Construction of the Nunavik Nickel Project continues notwithstanding the ongoing legal disputes between the owners of the project,” says an April 19 news release.

In this latest court action, Goldbrook alleges Jien is doing business in a way that is “oppressive or unfairly prejudicial to Goldbrook” and which “unfairly disregards the interests of Goldbrook.”

Goldbrook says it’s been cut out of the decision-making and management of Jien and Canadian Royalties, which are working to get Nunavik’s second nickel mine going by 2012.

Goldbrook says it hasn’t been receiving “adequate or timely financial information,” “timely technical information,” and that its Chinese partners haven’t lived up to the terms of their shareholder agreement.

Goldbrook objects to last year’s issuance of voting common shares for Jien Canada Mining Ltd. which reduced Goldbrook’s percentage of voting shares and interest in the Nunavik Nickel project from 25 per cent to 4.21 per cent.

Now Goldbrook wants to see financial information and that shareholders’ deal rescinded, then consider a buy-out for “fair value,” according to the April 19 news release.

Arbitration between Goldbrook and Jien over three other issues is ongoing.

Brian Grant, president of Goldbrook Ventures, recently told Nunatsiaq News that he couldn’t comment on the disputes, but that there’s “a lot of money at stake.”

Share This Story

(0) Comments