Halalt First Nation seeks $1.1B in civil suit against Catalyst Paper

VANCOUVER - The Halalt First Nation and its business partners are suing Catalyst Paper (TSX:CYT), alleging that a 59-year-old mill is trespassing and that the company has disclosed sensitive information, despite signing a confidentiality agreement.

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The paper and pulp company, based in Richmond, .B.C., says it denies the allegations contained in two separate civil suits and plans to defend itself vigorously.

Among other things, it says the trespassing suit is seeking $2 billion and a permanent order to prevent Catalyst from conducting operations at the Crofton Mill on the southeast coast of Vancouver Island, near Duncan, B.C.

Catalyst says the Halalt First Nation claims the Crofton mill -- operating since 1957 -- interferes with its water and land rights and has caused damage to fisheries and land within the Halalt's territory.

A second suit filed by the Halalt, Sunvault Energy Inc. and Aboriginal Power Corp. seeks $100 million from Catalyst and an order from court to permanently stop Catalyst from building, owning or operating an anaerobic digester facility.



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