Zone's Nord Mines claim dispute to stay in Quebec court

2013-01-29 15:17 ET - News Release


Mr. Archie Boyce reports


The Superior Court (civil division) of the Province of Quebec, District of Montreal, has denied a motion filed by Zone Resources Inc. to move the jurisdiction of legal proceedings from Quebec to a British Columbia courtroom. The basis of the hearing was solely to decide on a jurisdiction to hear the case and did not address details pertaining to the merits of the case.

Zone previously reported, on Sept. 25, 2012, that it had been served with, and named as one of the defendants in, a motion to institute proceedings in the Superior Court (civil division) of the Province of Quebec, District of Montreal, regarding a dispute concerning its interest in its Labrador Trough iron properties. In the motion, the plaintiff, Nord Mines Inc., alleges that the company does not have any legal basis or right to be listed as the registered or recorded owner of the claims. Nord also alleges that the company has engaged in conspiracy, conversion and unjust enrichment. The motion seeks an order that Nord is the registered owner of the claims, rectification to remove the company as the registered owner of the mining claims, to list Nord as the registered and recorded owner, and damages of $3-million.

The claims being disputed are all fully registered in the name of the company with the Ministere des Ressources naturelles et de la Faune. The company has also reconfirmed with the vendor and the staker of the claims that the agreements pertaining to the claims in question remain in full force and effect. Furthermore, the company confirms that the recording fees for a number of the claims under dispute were paid for by the company. The company considers Nord's allegations against the company in the motion to be without merit and the company intends to vigorously defend its position. The motion-to-institute-proceedings number is SCM: 500-17-073817-127.

We seek Safe Harbor.