The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Callinan Royalties Corp. is seeking additional damages in its lawsuit against Hudbay, accusing the company of wrongly destroying records pertaining to a profit-sharing agreement. Having already announced it will recommence its once idle lawsuit, Callinan now says it will also amend its statement of claim to seek an extra, undisclosed sum. 'The amended statement of claim will seek additional damages arising from the improper destruction of documents and financial records by Hudbay,' Callinan said in a news release, 'which effectively prohibited Callinan from conducting an independent audit of Hudbay's records as was agreed with Hudbay.' Callinan said the alleged destruction of documents violated its profit-sharing contract with Hudbay for the now-defunct Callinan mine and the still-operational 777 mine. It was also 'a violation of Hudbay's obligations under the rules of court to preserve and produce to Callinan all relevant documents,' Callinan said. Callinan further claims the documents were destroyed both before and after it launched its lawsuit against Hudbay in March 2007. See 'Hudbay' on pg. Continued from pg. Hudbay continues to maintain that it has not violated its deal with Callinan. 'We believe claims and allegations are best addressed in court, not press releases,' said John Vincic, vice-president of investor relations and corporate communications. 'We will defend in litigation and expect a positive outcome for Hudbay.' In its public statements, Callinan has not put a financial figure to the damages it is seeking from Hudbay. 'Following the filing of the amended statement of claim, additional updates on the litigation process will be disclosed from time to time,' Callinan said in its release, 'as required by regulation or law and/or until the Board of Directors of Callinan otherwise deems that disclosure is appropriate.' Two years ago, Callinan agreed to suspend the lawsuit while it conducted an audit of Hudbay's books. Hudbay agreed to supply all available documents reasonably requested. But this past February, Callinan reported that the audit _ which involved financial records from 1993, 2003, 2004, 2007 and 2011 _ could not be completed as planned. Audit work 'had been protracted' since 'much of the source material' from the earlier years to be examined 'is not available from Hudbay,' Callinan said in a previous news release. 'Therefore, the audit work conducted is incomplete and inconclusive in nature,.' On Aug. 26 Callinan issued the release to announce that it had given Hudbay the required 30-day notice of its intention to resume the lawsuit. Under a deal signed in 1988, Callinan is entitled to 6.66 per cent of profits from the Callinan mine 777 mines. Hudbay must also pay Callinan Royalties Corp. 25 cents for every tonne of ore milled from the mines.
