Prism Resources Inc. Files Notice of Civil Claim Against Detour
VANCOUVER, British Columbia, Aug. 01, 2017 (GLOBE NEWSWIRE) -- Prism Resources Inc. (TSX.V:PRS) (the “Company”) announces that it filed a Notice of Civil Claim in the Supreme Court of British Columbia against Detour Gold Corp. (“Detour”). In its claim the Company seeks general and special damages, costs and interest, as well as a declaratory judgement that its 7.5% net profit interest (the “Royalty”) in the Aurora and Sunday Lake claim blocks owned by Detour is a valid charge and enforceable as against Detour.
The Company announced on July 10, 2017 that it had entered into an agreement (the “Royalty Purchase Agreement”) with AuRico Metals Inc. and AuRico Metals Canadian Royalty Partnership (together “AuRico”) for the sale by the Company of the Royalty to AuRico. Following the announcement, the Company and AuRico received a written communication from Detour claiming the Royalty is invalid and unenforceable against Detour, notwithstanding Detour’s long and consistent disclosure record to the contrary.
On July 21, 2017 the Company announced that the Royalty Purchase Agreement had been terminated, as a direct result of Detour’s newly stated position repudiating any obligations under the Royalty. As a result of Detour’s action, the Company has suffered and continues to suffer loss and damages, including loss of the benefit of the Royalty Purchase Agreement with AuRico,
It is the Company’s position that the Royalty was and remains fully enforceable against Detour.
The Company considers Detour to be fully responsible for the loss of the contract with AuRico and liable for all resulting damages. The Company intends to assert all rights available at law to enforce its claim to the Royalty
About Prism Resources Inc.
Prism acquired the Huampar project from Trevali Mining Corp. (TSX:TV) and Nueva Condor, a private Peruvian mining company, in July of 2016. Our priority has been to establish good community relations and agreements which are in process. More recently our focus has been for the reconstruction of the mine models and organization of the databases in anticipation of a program designed to examine the reactivation of mining production. The mining rate will be determined based on the economics provided by the current study. To that end, JDS of Mining & Energy have been contracted to carry out a PEA on the Huampar reactivation project.
ON BEHALF OF THE BOARD OF DIRECTORS
Prism Resources Inc.
Robert W Baxter
President & CEO
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(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
For more information contact:
Robert (Bob) Baxter
Prism Resources Inc.
+1-778-928-1864
Email: bbaxter@prismresourcesinc.com
Scott M. Ross
Prism Resources Inc.
604-803-4883 Email:
sross@prismresourcesinc.com
Michelle Borromeo
Prism Resources Inc.
604-715-6845
Email: mborromeo@prismresourcesinc.com
