Contractor sues Timmins gold miner for $7.4M
Gowest Gold Ltd. in Timmins announced Monday it is being sued by North Bay-based Cementation Canada Inc. for $7.4 million. (Supplied)
Gowest Gold Ltd. in Timmins announced Monday it is being sued by North Bay-based Cementation Canada Inc. for $7.4 million.
Based in North Bay, Cementation is "seeking payment in the amount of approximately $7.4 million in respect of certain services and materials provided to the company under a contract between the parties dated as of March 2, 2017," said the post on Gowest's website.
"Cementation has further caused a lien to be registered on title to the company’s Bradshaw gold deposit. The statement of claim also names Greenwater Investment Hong Kong Ltd., the company’s largest shareholder and secured creditor, as a defendant in the action."
Officials with Gowest are evaluating the merits of the claim, the post said, as well as "its defence and other potential options available to it in response to the action."
The company is working to develop its Bradshaw gold deposit north of Timmins. In March of this year, Greenwater announced it was providing $19 million for the effort to restart the gold mine.
The impact of the statement of claim is still being evaluated, Gowest said.
"The Company remains in discussions with Greenwater with respect to the closing of its proposed additional equity investment in the company, including the impact that the Cementation action may have on this proposed investment," the statement said.
"The company remains committed to moving forward with its efforts to restart mining activities at Bradshaw and intends to continue its activities in this regard."
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100 per cent owned Bradshaw Gold Deposit on the Frankfield Property, part of the company’s North Timmins Gold Project.
Gowest is exploring additional gold targets on its more than 100‐square‐kilometre holdings and continues to evaluate the area, which is part of the Timmins gold camp.
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