Callinan Receives Favourable Court Ruling

Master Cooper of the Manitoba Court of Queens Bench, after reserving decision on an application made June 16, 2009, has dismissed the joint motion of Deloitte & Touche LLP and HudBay Minerals Inc. to strike an affidavit which Callinan is relying on in its motion to obtain working papers relating to the calculation of Callinan’s net profits interest in the Callinan and 777Mines.

This decision enables Callinan to move ahead with its motion to gain access to the working papers. Callinan’s counsel will be seeking an early hearing date on its motion to have the working papers produced.

In its action against HudBay commenced March, 2007, the Company is seeking:

(i) the right to conduct an audit of the books and records of the operations of HudBay in relation to the Callinan Mine and the recently developed 777 mine

(ii) a declaration that HudBay must keep and maintain separate records and accounts for each of the Callinan Mine and the 777 Mine

(iii) a declaration that the Cumulative Cash Flow defined in the NPI Agreement and accumulated for the Callinan Mine should not be used in calculating the Net Profits interest from the 777 Mine

(iv) an order compelling HudBay to make available to Callinan the books and records of both the Callinan Mine and the 777 Mine

(v) an order for an accounting of all sums improperly included or excluded in calculating the Net Profits Interest

(vi) general damages for breach of contract and breach of fiduciary duty,

(vii) aggravated and punitive damages, interest and costs.

Posted Feb. 05.10

Return to Home Page…


China Mining 2010 : World's Premiere Mining Congress and Exhibition Minesnooper