03 October 2008

Refinery's Euro-backers bailed in '07, law suit alleges

In statement of claim against Altius in the ongoing legal battles over the second refinery proposed for a site near Come by Chance, BAE Newplan Group claims that three European backers of the NLRC project withdrew in 2007.

BAE Newplan is seeking damages, interest and court costs totaling $20,594,224.65 in a dispute over engineering and environmental work done for the proposed refinery.

Later in the statement of claim, BAE-Newplan further accuses Altius of not disclosing key information, including that three European investors had dropped out of the project last year, and that $30 million raised in a share offering by Altius Minerals in November 2007 would be used to construct integral parts for the NLRC refinery.

An earlier suit brought against the refinery company - NLRC - led the refinery proponents to seek bankruptcy protection. Altius is one of the major shareholders in NLRC.

NLRC claimed that the project was suffering financial problems due to the subprime crisis in the United States. It is unclear whether the European investors bailed in 2007, something that hasn't previously  been reported by Altius or NLRC. The three investors are still listed on the NLRC website as of 03 October 2008.

Altius is a financing proponent on the provincial government's proposed Lower Churchill hydroelectric project.