Goldbrook wins a round in Nunavik mine dispute
Arbitrators say Jien Canada Mining Ltd. improperly reduced Goldbrook’s Nunavik Nickel mine stake
After a July 20 arbitration decision in its favour, Goldbrook Ventures Inc. says it will take “any futher steps necessary” to reclaim its former 25 per cent interest in the Nunavik nickel project.
Last year, Goldbrook said its Chinese partners in the Nunavik Nickel mine project violated their partnership deal. Goldbrook then started the first of three separate arbitration proceedings against the parent company of Jien Canadian Mining.
Goldbrook objected to last year’s issuance of voting common shares for Jien Canada Mining Ltd. which effectively reduced Goldbrook’s percentage of voting shares and interest in the Nunavik Nickel project from 25 per cent to 4.21 per cent.
Arbitrators found the dilution of Goldbrook’s interest in the nickel project had not been “authorized” and went against their shareholders’ agreement.
Goldbrook said in April that it wanted to see financial information and that shareholders’ deal rescinded, then consider a buy-out for “fair value.”
But the arbitrators said that if Goldbrook intends to seek an award, the Tribunal will need submissions from the parties on that issue first.
Goldbrook said July 20 that it intends “to pursue any further steps necessary in order to restore its 25% interest in the Nunavik Nickel Project.”
Meanwhile, Goldbrook continues to work with Jilin Jien Nickel Industry Co. on its Raglan project. The companies are now in the third year of an option-joint venture, under which the Chinese company can earn a 50 per cent interest in the Goldbrook properties by funding minimum exploration expenditures of $45 million, plus reinvestment of Quebec government rebates.