Hudson Bay Mining & Smelting Co. Limited engages in mining and producing copper, zinc, and precious metals. It operates three mines, two concentrators, a copper smelter, and a zinc pressure leach plant. The company was founded in 1927 and is based in Winnipeg, Canada. Hudson Bay Mining & Smelting Co. Limited operates as a subsidiary of HudBay Minerals, Inc.
201 Portage Avenue
Winnipeg, MB R3B 3L3
Founded in 1927
Callinan Royalties to Recommence Litigation and File Amended Claim Against Hudson Bay Mining & Smelting Co. Ltd
Sep 27 13
Callinan Royalties Corporation will recommence litigation and file an amended statement of claim in the Manitoba court of Queen's Bench in its lawsuit against Hudson Bay Mining & Smelting Co. Ltd. The amended statement of claim will seek additional damages arising from the improper destruction of documents and financial records by Hudbay which effectively prohibited Callinan from conducting an independent audit of Hudbay's records as was agreed with Hudbay.
Callinan Royalties Corp Recommences Litigation Against Hudson Bay Mining &Smelting Co
Aug 26 13
Callinan Royalties Corporation reported that it has provided the required 30 day notice of recommencing litigation to Hudson Bay Mining &Smelting Co., Limited. Law suit, which was commenced in 2007 in the Manitoba Court of Queen's Bench, Callinan alleged that Hudbay had not properly accounted to Callinan for the Net Profits Interest under the Net Profits Interest and Royalty agreement with Hudbay dated January 1, 1988. The agreement covers past and present mining areas that include Hudbay's 777 mine, currently in production, as well as the 777 North mine, which recently commenced production. The lawsuit was prolonged while Callinan pursued an application against Deloitte &Touche, LLP Hudbay's auditor for production of Deloitte's working papers prepared in connection with Deloitte's annual audit of the NPI and opinion to the effect that the NPI had been properly calculated. Although the application did not initially succeed, Callinan prevailed on appeal and production of the working papers was ordered by the Manitoba court. On September 09, 2011, Callinan reported that it had executed a standstill agreement with Hudbay, which placed in abeyance Callinan's lawsuit in respect of its Net Profits Interest and Royalty agreement with Hudbay dated January 1, 1988 while Callinan conducted an independent audit. Under the standstill agreement, Callinan initially planned to audit the NPI calculations for four selected years, namely 1993, 2003, 2004 and 2007. Callinan retained Grant Thornton LLP to conduct the independent audit. Hudbay agreed to cooperate with the auditors and to supply all available documents reasonably requested for the audit. In return, Callinan had agreed to hold the lawsuit in abeyance during the conduct of the audit while retaining the right at its sole discretion to terminate the audit and proceed with the lawsuit on reasonable notice in writing to Hudbay of not less than 30 days. On February 26, 2013, Callinan reported that the independent audit by Grant Thornton of the NPI calculations could not be completed as planned. Audit work for the four initially selected years as well as a partial audit of 2011 had been protracted as much of the source material evidencing entries from the originally selected early years is not available from Hudbay. Therefore, the audit work conducted is incomplete and inconclusive in nature. The Board of Directors of Callinan subsequently undertook a review to determine the next course of action. Alternatives included, but were not be limited to, conducting additional audit work, engaging in discussions with a view to a resolution of outstanding issues, or providing notice in writing to Hudbay and proceeding with litigation. The Board of Directors of Callinan has elected to recommence litigation against Hudbay and the Company does not intend to disclose information from the incomplete audit work conducted or report any developments with respect to the litigation unless required by regulation or law and until its Board of Directors otherwise deems that disclosure is appropriate.