Comments ?

drill it and they will come

griz

Anglo Swiss accused of delaying Kenville JV

2007-11-15 15:51 ET - Street Wire

by Stockwatch Business Reporter

Gold Standard Resources Corp. claims Anglo Swiss Resources Inc. is undermining its interest in the Kenville mine property near Nelson, B.C. The companies have an option agreement, and Anglo Swiss is refusing to accept Gold Standard's exploration expenditures as legitimate.

The statement of claim, filed in B.C. Supreme Court on Oct. 31, 2007, goes like this. In 2002, Anglo Swiss optioned the property to four companies: Tracer Enterprises Ltd., Babylon Enterprises Ltd., Foaming Holding Ltd. and Glacial Holdings Inc. In 2004, Gold Standard bought an 88-per-cent interest in the interest of the four optionees. To earn a 70-per-cent interest in the property, the optionees had to pay Anglo Swiss $100,000 and spend $700,000 on exploration by Sept. 5, 2006.

Gold Standard claims it spent the required sum on exploration by Aug. 5, 2006. It also claims it paid the $100,000. At that point, the option agreement required the companies to form a joint venture.

In a letter to the Ministry of Energy, Mines and Petroleum Resources dated Sept. 16, 2006, Anglo Swiss questioned the validity of Gold Standard's exploration expenditures in 2005 and 2006. Gold Standard says the contract stipulated that if either party questioned the exploration expense accounting, then it would have to conduct an audit. Although Anglo Swiss told Gold Standard it was not happy with the accounting, it did no audit.

Gold Standard claims Anglo Swiss wrote the letter to the ministry in bad faith to undermine Gold Standard's right to the property. It wants a declaration that the joint venture is valid, as well as a court order preventing Anglo Swiss from interfering with efforts to get ministry approval for the exploration expenditures, and damages for breach of contract.

Ben Ingram of Georgialee Lan & Associates represents Gold Standard. None of the allegations have been proven in court.

As reported in Stockwatch Jan. 1, 2007, the four original optionees made similar allegations against Anglo Swiss in a separate lawsuit. Mr. Ingram, who was then with a different law firm, represented that group of plaintiffs as well.

Anglo Swiss defended itself from those claims toward the end of January. The statement of defence said the four optionees were being dissolved and mentioned Gold Standard Resources. It also claimed to have hired an auditor to review the exploration expenditures. In the latest statement of claim, Gold Standard alleges that Anglo Swiss has not conducted an audit.