This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

Makena Resources Inc.'s deal to acquire a block of 73 claims in Newfoundland, which it entered just weeks ago, is already the subject of a lawsuit filed in the Supreme Court of British Columbia. The vendors complain that the company agreed to buy the claims but failed to follow through. The suit seeks damages of at least $5.5-million or a court order directing the company to complete the deal.

The allegations are contained in a notice of claim filed at the Vancouver courthouse on Wednesday, Sept. 19, by a man named Berthold Kalt and three private companies, two of which are controlled by Ryan Kalt. The case stems from an agreement that Makena entered on Aug. 8, 2018, for a block of 73 claims located in the Moosehead gold district of Newfoundland.

The terms of the deal, as set out in the lawsuit, were relatively simple. Makena was to issue 7.5 million shares and pay $50,000 to buy a numbered company that held the claims. There would also be a 2-per-cent royalty. According to the suit, Makena president Spencer Smyl executed the agreement on the company's behalf. On Aug. 14, 2018, the company issued a news release in which it set out the terms of the agreement (and explained how "pleased" and "excited" it was with the claims).

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS