Hammerstone Project
The Hammerstone Project is an expansion of Birch Mountain Resources' Muskeg Valley Quarry in Northern Alberta, near Fort McMurray, where Birch Mountain owned mineral rights on nearly one million acres in the heart of the oil sands region. The Hammerstone Project had approximately 1 billion tonnes of proven and probable limestone reserves for use to meet the projected demands for limestone and limestone products in the Athabasca region to the year 2060, where there is a known shortage of quality aggregate and limestone materials. Limestone products were to include construction aggregate for concrete and asphalt, as well as limestone-based products for cement and flue-gas desulphurization(FGD) for the oil sands extraction process. [1]
Recent History
PricewaterhouseCoopers(PwC) was appointed receiver of Birch Mountain Resources in November 2008 at the request of Tricap Partners Ltd., when Birch Mountain defaulted on its debts. The assets which included nearly 1 billion tonnes of limestone reserves, along with permits and leases for limestone and other minerals covering over 700,000 additional acres transferred to Tricap Partners Ltd, now operating under the Hammerstone Corporation, a subsidiary of Brookfield Special Situations Group for approximately $50 million. [2] The assets from the Hammerstone Project were valued at over $1.6 Billion dollars in an independent NI 43-101 Technical Report conducted by AMEC in 2006. [3] The study also looked at market demand and supply in the area.[4] The Hammerstone Corporation is currently operating the quarry which recently announced a new business contract.[5]
The Birch Mountain common stock traded as high as $7.99 and went to less than .01 cent a share by November 2008. The Birch Mountain Shareholders for Justice began working on their case and on September 22, 2010 a lawsuit against Brookfield Asset Management was filed with the Superior Court of Justice in Ontario, Canada. The lawsuit challenges the acquisition and transfer of the approximately $2 billion asset from a public company, Birch Mountain Resources, to a private company, the Hammerstone Corporation, a subsidiary of Brookfield Special Situations Group (formerly Tricap Partners LTD). [6] Both Brookfield and the plaintiff spent much of 2011 arguing on whether the trial should be held in Ontario, where Brookfield Asset Management is incorporated, or in Alberta, where the assets are located. The defendant, Brookfield, filed a motion that the plaintiff lacked jurisdiction in Ontario with the Superior Court of Justice and Brookfield's motion was upheld by the courts, which also awarded Brookfield costs.[7] In November, 2012, the Supreme Court of Canada declined to hear an appeal of the Ontario court's decision on jurisdiction, and again awarded Brookfield costs. Based on this decision, the Birch Mountain group amended their Statement of Claim and served/filed Brookfield/Tricap in the Court of the Queen's Bench of Alberta on July 25th, 2013 in Calgary.
References
- ^ Shute, Toby."A Lode of Limestone at Birch Mountain",’’The Fool.com’’, U.S, 20June2007 Retrieved 5July2012
- ^ "Birch Mountain names receiver",’’Calgary Herald’’, Canada, 7November2008 Retrieved 1July2012
- ^ "Material Change Report",Securities Exchange Commission, U.S. 2August2006 Retrieved 25August2012
- ^ Whiteley, Don. "Oilsands with a Twist of Limestone",’’Stockhouse.com’’, Canada, 30June2006 Retrieved 10July2012
- ^ "Trimac Transportation gets $36M limestone hauling contract from Hammerstone",’’The Canadian Press’’, Canada, 31May2012 Retrieved 5July2012
- ^ Gray, Jeff. "Squeezed-out Birch Mountain shareholders take on Brookfield",’’The Globe and Mail’’, Canada, 15November2011 Retrieved 1July2012
- ^ Todd, Jeffrey. "Brookfield fights legal battle in Canada over asset transfer",’’The Nassau Guardian’’, Bahamas, 26January2012 Retrieved 22July2012
See also
External links
- Birch Mountain Shareholders for Justice
- Brookfield class action
- Hammerstone Corporation
- Brookfield Asset Management
- PwC Birch Mountain in Receivership
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