Barkerville Gold Mines Ltd.
(TSX.V: BGM, FRA: IWUB, OTC: BGMZF)
Ontario Superior Court of Justice, Court File No: CV-16-549792-CP
For more information about this action, or to obtain a copy of the most recent statement of claim, please contact the Firm at [email protected].
The Shareholders allege that during and after the Class Period, the Defendants repeatedly published core and non-core documents and made other statements containing misrepresentations about the quantity and quality of the mineralized ore and corresponding amount of gold contained within Barkerville’s Cariboo Gold Project. In particular, Barkerville publicly released documents claiming that its Cow Mountain site within the Cariboo Gold Project contained indicated resources of over 10.6 million ounces of gold. The British Columbia Securities Commission took exception with the Company’s claims and cease-traded Barkerville’s securities for not preparing its technical report in the required form. Barkerville released an updated technical report which estimated that Cow Mountain contained indicated resources of only 1.04 million ounces of gold and inferred resources of only 3.9 million ounces. This caused Barkerville’s stock price to drop by over 53% on the first day once the Company’s stock resumed trading.
The Plaintiff served his materials for leave (permission) to commence a securities claim pursuant to s. 138.8 of the Ontario Securities Act on July 8, 2016 with the motion scheduled to be heard on October 16-19, 2017.
On October 26, 2017, the Parties reached a tentative agreement to settle this entire action. The Settlement Agreement is subject to Court-Approval. The hearing of the motion to approve the settlement and class counsel’s fees and disbursements will take place on February 14, 2018 at 10:00am E.S.T. at Osgoode Hall, 130 Queen Street West, Toronto, Ontario. A copy of the Settlement Agreement can be found here.
On November 2, 2017, Justice Perell of the Ontario Superior Court of Justice approved the Plaintiff’s motion certifying the Class for settlement purposes only, setting the date for the settlement approval motion, approving the notices of certification and settlement approval hearing, and providing other ancillary relief. A copy of the order can be found here and Justice Perell’s reasons for his decision can be found here.
A copy of the notices of certification and settlement approval hearing that were approved by the Court can be found below:
Short-Form Notice of Certification and Settlement Approval Hearing
Long-Form Notice of Certification and Settlement Approval Hearing
To remove yourself from the class, you must complete the Opt-Out Election Form available here. Your Opt-Out Election Form must be postmarked if sent by mail, or recieved if sent by email or courier, on or before January 2, 2018 at 5:00pm E.S.T. Otherwise you will be a part of the Class. Please Note that After January 2, 2018, no further right to opt out of this action will be provided.
Claim or Motion for Authorization issued:March 30, 2016
Class Period: June 28, 2012 to and including October 8, 2013
Leave to Proceed Record Served: July 8, 2016
Shareholders’ Counsel: Andrew Morganti, Eli Karp and Hadi Davarinia, Morganti & Co.
Shareholders’ Mining Experts: Benchmark Six
Corporate Defendants’ Counsel: Scott Kugler, Gowling WLG