Lawsuit closes, wrapping up joint Northwest Territories, Nunavut venture

Settlement of a legal spat has also ended a joint diamond exploration venture in the Northwest Territories and Nunavut.

Ashton Mining of Canada and Pure Gold Minerals finally resolved a lawsuit that was launched in May 2002.

They teamed up in 1993 to hunt for diamonds in the Slave geological area of the two territories, with Ashton holding 90 percent of about 540,000 acres and Pure Gold holding the balance.

But the partnership crumbled with Pure Gold suing over an alleged reach of the joint venture.

Under the settlement, Pure Gold will transfer its Slave area interest to Ashton for a 1.5 percent diamond royalty and granting Ashton a 1 percent diamond royalty over 99,000 acres of mineral claims in the North James River property in Nunavut. Pure Gold has a 50 percent stake in that property.