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Prism seeks C$10M from Detour

Canadian junior Prism Resources (TSXV: PRS) is seeking C$10 million (US$7.5 million) from miner Detour Gold (TSX: DGC) over a royalty dispute.
Prism seeks C$10M from Detour Prism seeks C$10M from Detour Prism seeks C$10M from Detour Prism seeks C$10M from Detour Prism seeks C$10M from Detour

Junior seeks damages from Ontario miner Detour Gold over royalty dispute

Staff reporter

Prism said yesterday it had filed a statement of claim in the Ontario Superior Court of Justice against Detour, seeking general and special damages, costs and interest, plus a declaratory judgement that its 7.5% net profit interest in Detour's Aurora and Sunday Lake claim block was valid charge and enforceable.

Prism had tried to sell its 7.5% royalty over the properties to AuRico Metals in July 2017 but said the agreement was terminated later that month, after Detour told both companies the royalty was invalid and unenforceable.

Prism filed a notice of civil claim against Detour in British Columbia's Supreme Court in August 2017.

It its latest MD&A filed this week, Prism said the court had ruled in August 2018 on the matter of jurisdiction for the legal proceedings and the company was "moving forward with the proceedings".

Detour has not yet released a statement in response to Prism.

Detour's new CEO Mick McMullen is set to start in the role today, the final move in a series of leadership and board changes at the company following a long and costly battle with activist shareholder Paulson & Co last year. 

The miner is due to release its first quarter results after market close tomorrow.

Prism shares were trading at C8c a year ago and hit a 52-week low last week of 2.5c. They closed up 40% or 1c yesterday to 3.5c, valuing it at $1.8 million.

Detour shares are near the middle of a 52-week range at $11.90, putting its market capitalisation at $2 billion.