More Bad News!!
Royal Oak Mines Inc RYO
Shares issued 162,000,000 Jan 27 close $0.35
Thu 28 Jan 99 In the News
The National Post reports in its Thursday, Jan. 28, edition that Royal Oak Mines has launched a suit against a supplier, providing the first indication of production problems at its flagship Kemess gold-copper mine in northern B.C. The National Post's John Schreiner writes that the Kemess operations are critical to the company's survival. Royal Oak, itself the subject of numerous supplier suits in B.C. Supreme Court, is seeking
damages from Baker Hughes Canada Inc. for alleged misrepresentations, negligence, and breach of contract" involving processing equipment installed by Eimco Process Equipment Inc., a subsidiary of Baker Hughes.
According to Royal Oak's statement of claim, problems with the equipment have caused "ongoing production losses due to diminished gold and copper recoveries, ongoing increased maintenance costs, and increased production costs." The statement says Royal Oak has withheld a portion of the purchase price from Baker Hughes. The sum is not disclosed. An unnamed source says the process equipment involved could cost as much as $20-million.
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