Goldcorp says Mexico land group threatens to sue it in Canada

Mon Dec 9, 2013 8:47am EST
 
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TORONTO Dec 9 (Reuters) - Goldcorp Inc said on Monday a group challenging its use of lands around its Peñasquito mine in Mexico is threatening to sue the company in Canada.

The company and a local landowners group, the Cerro Gordo Ejido, have been locked in a tussle for months. Goldcorp, in June, won a temporary suspension of an agrarian court ruling that nullified Goldcorp's lease of the lands and ordered that the land be returned to the Cerro Gordo Ejido.

Since then, Goldcorp and the Cerro Gordo Ejido have been in talks with a view to reaching a settlement.

However, Vancouver-based Goldcorp said on Monday it had received a notice from a Canadian law firm purporting to represent the Cerro Gordo Ejido group, threatening litigation against Goldcorp in Canada concerning the same lands.

Goldcorp said it has assessed the underlying allegations of the proposed litigation and believes the claims are baseless. It said it will vigorously defend any claim if one is filed.

The Cerro Gordo Ejido group was not immediately reachable for comment.