The class action suit against Delgratia Mining Corporation set a historic precedent as it brought about Canada’s first securities class action settlement.
The suit, filed in August 1997, alleged that the Company’s announcement of a gold strike in Nevada was based on bogus core samples. In a scenario reminiscent of Bre-X, it turned out that the core samples had been salted.
The settlement calls for the payment of legal expenses (but not legal fees) of up to $500,000 U.S. and the issuance of 2.5 million shares to class members.
The following is a list of Settlement Documents relating to the Delgratia Class Action.