Southerwestern sues former CEO

Southwestern Resources, the Vancouver-based exploration company, has filed a lawsuit in the Supreme Court of British Columbia, against its former chief executive officer.

The action, which centres on alleged errors in assay data from the company’s Boka gold project in China, also incorporates “certain affiliated companies”.

Southwestern has issued a press release confirming that the lawsuit contains allegations of “fraud, breach of fiduciary, statutory and contractual duties and insider trading”.

It goes on to say that the company is seeking to recover all damages and losses incurred.

In addition, Southwestern is pursuing similar claims with the former general manager of the Boka Project, through legal counsel in China.

The Boka project itself is currently the subject of a review, which is being undertaken by Southwestern and an independent mining consultant.

A study of the drilling database for the project is almost complete, having involved scrutiny of the underlying official assay certificates for the project.

The report is expected to be published this autumn and until that time, the company has declared that it can provide no assurances as to the mineral resource at the Boka Project.

However, Southwestern’s press release does state that whilst the company acknowledges that the mineral resource at its Boka Project is significantly less than previously reported, there are nonetheless indications of gold mineralization in drillholes and historical mine workings.