Dundee Corp. (TSX:DC.A) announced that it is prepared to take legal action to block Formation Metals Inc.’s (TSX:FCO) planned US$9-million sale of its Idaho-based Sunshine precious metals refinery to Waterton Global Resource Management Inc. on the basis that it is “improvident.” Dundee holds 17 percent of Formation and believes it is the company’s largest shareholder.
As quoted in the press release:
Dundee is of the opinion that the proposed sale of the Refinery and the sales price are improvident and not in the best interest of Formation and its shareholders. In addition, Dundee is of the opinion that the sale of the Refinery requires the approval of the Formation shareholders, being a sale of substantially all of the assets and undertaking of Formation when measured on either a quantitative or a qualitative basis. Accordingly, Dundee proposes to commence legal proceedings to enjoin the sale of the Refinery unless the sale receives the requisite shareholder approval.