Business
Red Lake Gold Receives $120 Million Statement of Claim Over 70% Earn-In Option at Whirlwind Jack Project
Vancouver, British Columbia – TheNewswire - July 5, 2022 – Red Lake Gold Inc. (CSE:RGLD) (“Red Lake Gold” or the “Corporation”) reports that it has been named a
About this update from Red Lake Gold Inc
[{"type":"text","content":"Vancouver, British Columbia – TheNewswire - July 5, 2022 – Red Lake Gold Inc. (CSE:RGLD) (“Red Lake Gold” or the “Corporation”) reports that it has been named as a party in a Statement of Claim issued by Barrick Gold Inc. (“Barrick Gold”) in the Toronto Superior Court of Justice on June 30, 2022 (Court File No: CV-22-00683409-0000)(the “Claim”). The Claim alleges, among other things, that Red Lake Gold has breached certain obligations in Earn-In and Joint Venture Agreement to pursue more lucrative commercial arrangements concerning the Corporation’s mining claims. Red Lake Gold intends to defend the Claim and Lenczner Slaght LLP has been retained by the Corporation as litigation counsel. Statement of Claim The Claim seeks, on a joint and several basis, the aggregate sum of specified and enumerated monetary damages, among other claims, of $120 million for a 70% exploration earn-in option (the “Earn-In Option”) in the Whirlwind Jack Gold Project (“Whirlwind Jack”), arising from the termination of the Earn-In Option by the Corporation on June 7, 2022. Among other defendants to the Claim, Barrick Gold named “ABC Corporation Inc.”, as placeholder for party that Barrick Gold alleges may have attempted, or may attempt hereafter, to deal in the subject project following the termination. Information for Shareholders Red Lake Gold advises shareholders as to the following particulars: During the fall of 2021, Red Lake Gold elected to engage with Barrick Gold for purposes of examining an exploration-focused earn-in agreement whereby Barrick Gold might earn an interest in a portion of Whirlwind Jack (the “Barrick Engagement”). The Barrick Engagement culminated in the formalization of an exploration-focused earn-in option agreement which could, if all terms were met, enable Barrick Gold to earn a 70% interest in Whirlwind Jack (the “Exploration Earn-In Option Agreement”) as dated November 1, 2021, and as consequently disclosed with detail by Red Lake Gold (see news release, Red Lake Gold Inc. Announces Agreement with Barrick Gold, dated November 3, 2021). On June 3, 2022, Barrick Gold served Red Lake Gold with a force majeure declaration citing, among primary factors, community engagement work and title-assertions (the “Barrick Gold Force Majeure Demand”). The Barrick Gold Force Majeure Demand also instructed Red Lake Gold to act t...