Millions of dollars from
Flin Flon’s last remaining mine continue to flow westward under
an agreement at the heart of a tense lawsuit.
Vancouver-based Callinan Royalties Corp. announced last week it has received from Hudbay interim royalty payments totaling $2,244,799 for the second quarter of 2014.
The money came through Callinan’s profit-sharing deal relative to the 777 mine.
Most of the cash ($2,135,706) stemmed from the part of the agreement that that awards Callinan 6.66 per cent of earnings from the mine.
The remainder ($109,093) arose from the 25 cents Callinan receives for every ton of ore processed from the mine.
The larger payment represented 75 per cent of what Callinan is entitled to. Hudbay must pay the other 25 per cent in mid-2015.
In 2013, Callinan received
royalty payments from Hudbay totalling $11,488,032 under the profit-sharing deal, signed in 1988.
Additional damages
Also in 2013, Callinan announced it was seeking additional damages in a lawsuit it launched against Hudbay in 2007.
The lawsuit initially accused Hudbay of violating the profit-sharing agreement. The claim for additional damages stemmed from Callinan’s contention that Hudbay wrongly destroyed records pertaining to that same agreement.
Hudbay has maintained it did nothing wrong.
“We believe claims and allegations are best addressed in court, not press releases,” John Vincic, then vice-president of investor relations and corporate communications, said last year. “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.
