Scorpio will pay US$1mln to end the dispute between National and Mineral Ridge LLC, a 70%-owned subsidiary of Scorpio and the operator of the firm’s Mineral Ridge gold operation in Nevada.
“After negotiation with National, the company determined that it was in its best interest to settle the case for an amount of US$1 million and end the costly litigation,” the company said in a brief stock market announcement.
A prior ruling indicated that Scorpio may have had to fork out US$2.3mln to bring the litigation to a close.
The company and its lawyers appealed the verdict but had to provide the cash as a deposit pending the outcome.
As a result, the courts have returned US$1.3mln to Scorpio which it said will be used to further advance its Nevada properties.
Scorpio holds a 70% interest in the Mineral Ridge gold mine in Esmerelda County, Nevada, with its joint-venture partner Elevon, LLC owning the remainder.
Mineral Ridge is a producing, open pit gold mine and is host to several gold-bearing veins and structures.
The company also has a 100% interest in the Goldwedge property in Manhattan, Nevada, which is still in the exploration stage.
Shares were unchanged at C$0.12 on Tuesday Morning.
Story by ProactiveInvestors