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by Mike Caswell
Lundin Gold Inc.'s former law firm, Cassels Brock & Blackwell LLP, denies that it had anything to do with a legal snafu that left Lundin responsible for paying a royalty on a property that it no longer owned. Cassels Brock says that Lundin itself is to blame for the problem. The situation only arose because of the way that Lundin shuffled assets amongst its subsidiaries.
Cassels Brock is responding to a lawsuit that Lundin filed in the Supreme Court of British Columbia on Dec. 4, 2017. The suit claimed that Cassels Brock was negligent in handling the 2010 transaction in which Lundin Gold disposed of its Svetloye mine in Russia. At the time Lundin was responsible for paying a 1-per-cent royalty on the property to a Russian entity.
The problem, according to the suit, was that Lundin sold the property without including the royalty in the arrangement. This left Lundin in the position of having to pay a production royalty on a property that it no longer owned. Lundin blamed this state of affairs on Cassels Brock, and sought appropriate damages.
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