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by Mike Caswell

Barkerville Gold Mines Ltd. denies that it did anything wrong in terminating contracts it had with a company belonging to its former president, Frank Callaghan. Barkerville claims that it ended the contracts in accordance with their terms. As such, it owes Mr. Callaghan nothing.

The statements from Barkerville come in response to a lawsuit that Mr. Callaghan filed in the Supreme Court of British Columbia on Oct. 30, 2017. He claimed that Barkerville unfairly terminated two contracts, one of which had been in place since 1998. He said that the company was required to provide reasonable notice before it ended the agreements. Despite that, Barkerville ended a drilling contract on Aug. 7, 2015, and gave him about three weeks to move his equipment, he complained. The company then refused to pay the $212,669 in demobilization costs, Mr. Callaghan said.

For its part, Barkerville sees things much differently. In a response filed on March 5, 2018, it says that it was not required to give any notice to end the drilling contract. That contract called for Mr. Callaghan to supply one diamond drill as well as all the components and personnel to operate the drill, and could be terminated at any time, according to the response. Moreover, the company was under no obligation to pay the bill for moving the equipment from the site, the response states. It was an implied term of the agreement that Mr. Callaghan's company would pay for that demobilization, Barkerville says.

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