April 4, 2006
De Beers Appeals Canadian Court Decision
De Beers Canada has filed an appeal following the dismissal last week of the company's lawsuit against mining company Shore Gold Inc. over the rights to a joint diamond mining project in Saskatchewan, Canada.
De Beers filed suit against Shore Gold in early February over voting control of the mining project, which could potentially tap into one of the largest diamond deposits in Canada. When Shore Gold merged in 2005 with Kensington Resources Ltd., Shore and De Beers became equal partners in the Saskatchewan project, each controlling around 42%, according to Canadian Business.
Then in October, Shore announced that it had struck a $8.6 million deal with Cameco Corp. and UEM Inc., the holders of the remaining interest in the project, to take over the two companies' voting rights for the next seven years. The deal put De Beers in the minority position on the project. De Beers' lawsuit sought to deem Shore Gold's deal with Cameco and UEM invalid.
Last week, a Court of Queen's Bench judge dismissed the De Beers Canada lawsuit, prompting De Beers to file an appeal. No date has been set for the appeal healing.