Here's the FP article on Dayton and MDIN...
Tuesday, July 14, 1998
Dayton irked by Chilean prospector and his mum
By PETER KENNEDY
Vancouver Bureau The Financial Post
Dayton Mining Corp. said yesterday some areas of its flagship Andacollo gold mine in Chile are subject to a
dispute with a local prospector.
However, the company said it believes it holds title and surface rights to all the land covering published gold
reserves at the mine.
Dayton said it was forced to clarify its position after a California-based company, Medinah Energy Inc., issued a
statement on June 17 that raised doubts about the Vancouver company's ownership rights.
"Someone is trying to play games with us, and we are just trying to do the right thing,'' said Dayton Mining
president Bill Myckatyn.
The company said the issue has arisen because some areas containing one of eight deposits at Andacollo were
overstaked by Julio Alberto Tornero Olivos, a Chilean prospector.
While a Chilean court ruled in 1995 the Tornero claims should be annulled, the information could not be removed
from the register because it had been put in the name of Tornero's mother.
As a result, Dayton has had to refile its lawsuit. Based on the original ruling, the company says it expects to be
successful in the new suit.
Dayton has obtained an injunction against any further transfer or sale of the claims until the courts rule on that
lawsuit.
It added it also holds full surface rights to mine certain areas of Andacollo after paying US$125,000 to end a
dispute with Tornero's mother.
Medinah said on June 17 it has the right of first refusal to acquire certain disputed properties from Tornero if he
secures legal title to them. It also said those rights apply to ground inside the Andacollo open pit.
Yesterday, Dayton shares (DAY/TSE) closed down 2› at 90›.
-- with files from Dow Jones
|
