A legal battle has emerged between East Coast Mining Ltd. and Canada Fluorspar (N.L.) Inc. over an alleged unpaid sum of $4.2 million. East Coast Mining Ltd. has taken legal action at the Supreme Court of Newfoundland and Labrador, claiming that Canada Fluorspar (N.L.) Inc. failed to compensate them for services rendered at a fluorspar mining site on Newfoundland’s Burin Peninsula. The services included construction, equipment operation, maintenance, and personnel provision for mining activities.
The lawsuit, filed by Stewart McKelvey lawyer Jonathan Dale, asserts that despite fulfilling their obligations as per the agreement, East Coast Mining Ltd. has not received payment for their work. In response to the non-payment issue, East Coast Mining Ltd. lodged a mechanic’s lien worth $4,054,072 against Canada Fluorspar (N.L.) Inc. back in June. The total amount sought after, $4,222,913.33, has been invoiced but remains outstanding.
Canada Fluorspar (N.L.) Inc., represented by Willem Jacobs, denies the lawsuit, stating that it is a standard practice in the mining sector to use mechanic’s liens as a form of security. Jacobs clarified that the filing of the lien does not equate to being sued and emphasized that both parties have agreed that East Coast Mining Ltd. will not act on the registered lien. He further mentioned the intention to resume mining operations within two weeks and reiterated the unchanged relationship between the parties.
Despite the legal dispute, East Coast Mining Ltd. and Canada Fluorspar (N.L.) Inc. affirm their commitment to cooperation and anticipate a successful collaboration in restarting mining activities. Ledcor, the parent company of East Coast Mining Ltd., and Canada Fluorspar (N.L.) Inc. continue to work together towards project success, with both parties remaining engaged in the ongoing process. Canada Fluorspar (N.L.) Inc. is yet to submit a statement of defense in response to the allegations.
