Consolidated Zinc Ltd. received a claim from Pandion Minerals Pty Ltd. that it conditionally holds a 10% interest in Consolidated Zinc's Plomosas zinc-lead-silver project in Mexico.
According to an Aug. 10 release, Consolidated Zinc refuses to accept the claim and said it will defend it "vigorously." Plomosas is owned by joint venture company Minera Latin America Zinc, which is held 51% by Consolidated Zinc.
According to Pandion's claim, it will receive the stake if Consolidated Zinc acquires a further 39% of the joint venture, and the interest will be free carried until a definitive feasibility study.
Pandion is basing its claim on a December 2014 letter agreement. Consolidated Zinc said it was not aware of the agreement and does not accept its authenticity.