Atna Resources Ltd -
Atna sues Boliden over Wolverine sale to Expatriate
Atna Resources Ltd
ATN
Shares issued 20,203,788
1998-06-23 close $0.78
Tuesday Jun 23 1998
Also Expatriate Resources Ltd (EXR)
Also Boliden Ltd (BOL)
by Brent Mudry
Atna Resources has filed a suit against Boliden Westmin, a subsidiary of Boliden
Ltd, relating to the sale of its interest in the Wolverine Lakes claims to Expatriate
Resources. In a statement of claim filed Tuesday in the Supreme Court of British
Columbia, Atna seeks the cash equivalent of the 4.8 million Expatriate shares that
Boliden stands to gain for the sale of its interests. The Expatriate share block is
worth about $2.7-million. Under a January, 1996, joint venture, Atna owned a 40
per-cent interest in the claims in the south central Yukon, while Westmin
Resources owned a 60 per-cent interest. Boliden acquired Westmin last
December. Vancouver securities lawyer Gary Snarch of Snarch & Allen notes
that on May 27, Boliden forwarded to Atna a copy of a signed letter of intent in
which Expatriate agreed to buy Boliden's Wolverine interest for 4.8 million
Expatriate shares.
Two days later, Atna demanded that Boliden provide it the cash equivalent of the
4.8 million Expatriate shares. Atna notes that on June 16, it formally "accepted"
Boliden's offer to sell its Wolverine interest to Expatriate, but Boliden refuses to
recognize Atna's acceptance. The suit seeks a court declaration that the Boliden
offer is covered by the joint venture agreement, entitling Atna to 4.8 million
Expatriate shares. Mr Snarch alternatively seeks the appointment of an arbitrator
to establish a valuation for the Wolverine claims and a court order restraining
Boliden from disposing of its Wolverine interest. The suit notes that Expatriate's
annual meeting is set for July 9.
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