Cash Minerals sued for unpaid $395,000 bill
2007-12-04 13:55 MT - Street Wire
by Mike Caswell
Vancouver mineral consultant Archer, Cathro & Associates is suing Cash Minerals Ltd. over an unpaid $395,000 bill.
In a statement of claim filed in B.C. Supreme Court on Nov. 23, Archer Cathro says it performed consulting and geological services on three of Cash Minerals' properties from July, 2006, to April, 2007, but nobody paid for the work.
Most of the disputed amount stems from work on the Yukon uranium project, where Cash Minerals has drilled over 18,000 metres this year.
Last April, Cash Minerals optioned the ground from Twenty-Seven Capital Corp. (now part of Mega Uranium Ltd.). The terms called for Cash Minerals to spend $3.4-million on exploration, but Twenty-Seven Capital would remain operator.
According to the brief lawsuit, Cash Minerals authorized Twenty-Seven to hire Archer, Cathro to carry out some of that work, which it did. Cash Minerals paid the bills until June, 2006, without any problems.
Since then, Cash Minerals has refused or neglected to pay any invoices, says the statement of claim. In spite of that, Archer, Cathro says it kept performing work and sending bills until April, 2007.
Despite demands, Archer, Cathro says Cash Minerals has refused or neglected to pay the outstanding charges. In addition to the Yukon ground, Archer, Cathro is claiming amounts owing for work on the Division Mountain coal property and the Silverquest property.
Archer, Cathro is seeking a $395,000 judgment, plus interest and costs. It has not proven its allegations in court and Cash Minerals has not yet answered them. The lawsuit was filed on Archer, Cathro's behalf by Jack Webster of Webster, Hudson & Akerly LLP.
Cash Minerals closed at 38.5 cents on Monday, up half a cent.
