Dispute divides partners in Nunavik Nickel project
Goldbrook Ventures says Chinese partners violated deal
Goldbrook Ventures Inc. has started arbitration proceedings in British Columbia against Jilin Jien Nickel Industry, Co., Ltd. and its affiliates, which are developing the Nunavik Nickel mine project.
“Although Goldbrook intends to advance its position vigorously there is no certainty it will be successful in this regard,” the company said in an Oct. 20 news release.
Goldbrook says Jilin Jien’s issuance of voting common shares for Jien Canada Mining Ltd. reduces Goldbrook’s percentage of voting shares and interest in the Nunavik Nickel project from 25 per cent to 4.21 per cent.
Goldbrook also says the share issuance violates the terms of the shareholder agreement between the companies, which calls for Goldbrook to hold 25 per cent of the voting shares of Jien Canada.
Goldbrook is in the third year of an option-joint venture agreement with Jilin Jien, under which the Chinese company can earn a 50 per cent interest in Goldbrook’s properties by paying a minimum of $45 million towards exploration plus a reinvestment of Quebec government rebates.
Goldbrook is” the single largest holder of mineral rights” in the mineral-rich Raglan belt near Xstrata’s nickel mine, where it holds a 100 per cent interest in 861,000 acres.
This summer Goldbrook Ventures carried out an “aggressive” exploration and drilling program at two camps, looking for nickel, copper, cobalt, platinum, palladium and gold.
On Oct. 21 Goldbrook said Jilin Jien paid the final payment of $1 million towards the 2010 exploration program budget of $17 million.
The past summer Jien Canada Mining Ltd. sunk $112.4 million to develop the Nunavik Nickel mine project, located about 90 kilometres west of Kangiqsujuaq and just south of the Raglan nickel mine.
Jien Canada Mining Ltd. acquired the Nunavik Nickel project from Canadian Royalties Inc. in November 2009, when Chinese interests were taking advantage of low metal prices by going bargain hunting for financially-troubled Western mining assets.