Expropriation Claim
Expropriation of Amber Mineral Claims
In July of 1995, the Government of British Columbia expropriated Rock Resources’ (subsequently Lumby Resources which was Adroit’s predecessor company) major assets – the Amber Mineral Claims for the creation of The Goat Range Provincial Park.
History of the Claim:
The following is a historical overview of our legal case seeking financial compensation for the expropriation of these assets.
- April 1996: Rock Resources requests a $15 million settlement from the government as fair compensation.
- December 1996: Rock Resources commences legal proceedings to obtain compensation.
- March 2001: Summary Trial.
- August 2001: Judgment entered against Rock Resources.
- December 2002: Court of Appeal Hearing.
- June 2003: Judgment rendered 4-1 in Adroit’s favour.
- September 2003: Government files leave to Appeal to Supreme Court of Canada.
- April 2004: Leave to Appeal denied.
- January 2007: Amended Statement of Claim filed. Management is pleased to report that the Company’s corporate counsel, Holmes & King, filed its Amended Statement of Claim on Monday, January 15th, 2007 in the Supreme Court of British Columbia.
Current Status: The quantum of damages to be awarded to Adroit is to be determined and paid by the government of British Columbia. Adroit is proceeding through the Courts to obtain compensation.
Funding for the Legal Case
Special arrangements were made to enable the Company to have funds available for the full pursuit of this legal claim. These funds are made available as a non-recourse loan from an offshore corporation and are drawn down as required.
The non-recourse loan facility is for up to C$500,000 and bears interest of 1% per annum, paid in arrears. The loan shall be repaid upon the receipt of damages awarded. If Adroit receives damages that are less than the principal amount of the loan, Adroit shall pay the amount of damages received to fully discharge the loan. If Adroit has not received damages prior to December 10, 2010, the loan shall be forgiven.
In conjunction with the loan facility, and immediately after damages are received, Adroit will acquire 100% of the shares of the off-shore corporation for C$600,000 plus an amount equal to 10% of any damages received greater than $1,200,000. If the damages received by Adroit are less than $1,200,000, the shares will be purchased for the amount of damages less $600,000. If damages received are less than $600,000, Adroit will not be required to purchase the shares.