Sedgman Canada Ltd. alleges breach of contract and negligence by Artemis Gold Inc. and BWG Gold Ltd. over delays and interference at the Blackwater Gold mine construction site.
The company that Artemis Gold Inc. hired in 2022 for engineering, procurement and construction on its Blackwater Gold (BWG) mine south of Prince George is suing the project owner and a subsidiary for breach of contract and negligence. Sedgman Canada Ltd. said in its B.C. Supreme Court notice of civil claim, filed Friday, Dec. 19 in Prince George, that its work was delayed and disrupted by numerous events for which it was entitled to extensions of time and additional compensation.
Sedgman said it agreed in September 2022 with BWG Gold Ltd. on the $318.2 million contract, which set Aug. 31, 2024 as the deadline for practical completion at the site, 160 kilometres southeast of Prince George. But, in the lawsuit, Sedgman accuses defendants Artemis and BWG of various delays, interference and mismanagement, including failure to provide Sedgman site access, removing Sedgman personnel from the project, and making changes and acceleration directives that altered the contract and impacted the project schedule. There were also wildfire-related evacuations in July 2023 and 2024 that required Sedgman to leave the site and then remobilize the project. Sedgman alleged that despite suffering months of delay caused by BWG’s interference, and BWG’s public acknowledgments that wildfire incidents had delayed the project, BWG did not approve a single day’s extension of time for Sedgman to perform the work while the contract was in force. Sedgman claimed it was still able to complete over 90 per cent of its work by October, but BWG took over the project “in breach of the contract and in bad faith” and made false claims about Sedgman being in material breach of its obligations. Further, Sedgman “put BWG on notice” that it had breached the contract and misappropriated $31.8 million in performance security funds
LAW SUIT BREACH OF CONTRACT CONSTRUCTION BLACKWATER GOLD MINE ARTEMIS GOLD
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