VANCOUVER, British Columbia, April 30, 2019 (GLOBE NEWSWIRE) -- Prism Resources Inc. (TSX.V: PRS) (the “Company”) announces that it filed a Statement of Claim in the Ontario Superior Court of Justice against Detour Gold Corp. (“Detour”). In its claim the Company seeks general damages of $10,000,000.00; 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 block owned by Detour is valid charge and enforceable as against Detour.
The Company announced on July 10, 2017 that it had entered into an agreement with (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 has mutually agreed with the original owner of the Huampar property to terminate the agreement due to the inability to raise funding in the markets to further develop the property. Prism originally acquired the Huampar project from Trevali Mining Corporation (TSX: TV) and Nueva Condor, a private Peruvian mining company, in July of 2016.
ON BEHALF OF THE BOARD OF DIRECTORS
PRISM RESOURCES INC.
Robert W. Baxter
President & CEO
For more information contact:
Robert (BOB) Baxter
Prism Resources Inc.
+1-778-928-1864
Email: bbaxter@prismresourcesinc.com
Scott M. Ross
Prism Resources Inc.
+1-604-803-4883
Email: sross@prismresourcesinc.com
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