Goldbrook wins another round against Jilin Jien in Nunavik Nickel dispute
Goldbrook to see its 25 per cent share in the project restored
Vancouver-based Goldbrook Ventures Inc., a partner in the Nunavik Nickel mine project, came out winning again in its dispute with its joint venture partner Jilin Jien Nickel.
Goldbrook had objected to last year’s issuance of voting common shares by Jilin Jien 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.
Jilin Jien Nickel Industry acquired the nickel mining company Canadian Royalties Inc. in 2010, but Goldbrook said its Chinese partners in the Nunavik Nickel mine project violated their earlier partnership deal to develop Nunavik’s second nickel mine.
Goldbrook then started the first of three separate arbitration proceedings.
On July 20 the arbitration tribunal found the dilution of Goldbrook’s interest in the nickel project had not been “authorized” and went against their shareholders’ agreement.
Arbitrators then told the parties to make supplemental submissions on restoring Goldbrook’s 25 per cent interest in the project.
On Sept. 27, arbitrators ordered Jilin Jien to take steps to cancel the units which diluted Goldbrook’s share in the project, restore Goldbrook’s shares to 25 per cent and “to use their best efforts to agree on and implement those steps,” Goldbrook said in a Sept. 28 news release.
Last month, Jilin Jien Nickel Industry Co. said it’s ready to invest an additional $400 million in the Nunavik Nickel project in Nunavik.
Wu Shu, the mining company’s chief executive office, made the announcement Aug. 29 in Beijing after a meeting with Premier Jean Charest, who was on a trade mission that has taken him to Japan and China.
The $400 million means Jilin Jien will have sunk $800 million to fast-track that mine, Nunavik’s second, into operation.
The mine is expected to begin production in mid-2012 and employ about 270 people.