Whitehorse Daily Star

$37-million lawsuit has been settled

One day after a $37-million lawsuit was filed by a company hired to work at the Wolverine Mine, the mine owners say the dispute has been settled.

By Ashley Joannou on July 27, 2012

One day after a $37-million lawsuit was filed by a company hired to work at the Wolverine Mine, the mine owners say the dispute has been settled.

Earlier this week, lawyers for Procon Mining and Tunneling filed the lawsuit in Yukon Supreme Court under the Miners Lien Act.

They claimed the Vancouver-based company still hadn't been paid $37 million of the nearly $70 million it was owed by Yukon Zinc Corp., which runs the mine.

In an email to the Star this morning, Crystal Zhang, general manager, corporate communications and administration for Yukon Zinc, said the two sides have come to an agreement.

"The dispute with Procon is now fully settled with a written agreement, and we will continue the work relationship with Procon at our Wolverine Mine.”

Zhang said the new agreement was signed Wednesday, just one day after the lawsuit appeared in court.

Details of the new written agreement were not released.

In the original lawsuit, Procon claimed it had agreed to provide mining and development services at the Wolverine Mine as well as work on building a wet shotcrete production plant.

In the end, the company says it was owed about $70 million.

According to the lawsuit, Procon and Yukon Zinc entered into an "indebtedness acknowledgement and payment agreement” dated March 30, 2012.

Some payments were made, the documents say, but not all.

As of Tuesday, when the lawsuit was filed, Procon claimed it was still owed $37,692,115.

The Wolverine Mine is located in southeast Yukon, about 190 km north of Watson Lake.

Procon has been working at the mine since 2005. As of last month, it had about 124 employees working on the site, Zhang said.

Calls to Procon were not returned in time for this afternoon's press deadline.

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