Ross Mine owner sued

Jon Rudolph is being sued for more than $3 million. He's the owner of Ross Mine, a placer operation located about 80 kilometres southeast of Dawson City, on Dominion Creek.

Jon Rudolph is being sued for more than $3 million.

He’s the owner of Ross Mine, a placer operation located about 80 kilometres southeast of Dawson City, on Dominion Creek.

Until recently, Rudolph had been riding a tide of good news.

In September, he wined and dined a group of prominent environmentalists, jewelry merchants and First Nation leaders at his minesite, touting his product as “ethical gold.”

Now he’s neck-deep in court papers.

Rudolph bought the mine from Norman Ross in 2005 for $7 million.

Rudolph has paid $4 million so far. But, in January, he missed a $1.5-million payment.

So Ross is calling the debt. He wants the remaining $3 million, plus owed interest.

And he wants the company put into receivership to ensure he gets what he’s owed.

Ross, who founded the mine in 1980, lost confidence in the operation when he discovered it had owed $653,740 to a fuel company since early December.

That company, Mackenzie Petroleums Ltd., put a lien against the mine’s assets later that month.

If the mine starts up this season, Rudolph will only dig himself deeper in debt, Ross states in court documents.

“I am very concerned that Ross Mining will incur liabilities to suppliers and employees that it will be unable to satisfy, giving rise to further liens claims which, I understand, would likely take priority over the security granted to me by Ross Mining,” the document states.

As a result, Ross worries he may not get the money he’s owed.

Ross has not yet been provided with the mine’s 2008 financial statements, either. That was part of the deal and was supposed to have been provided by February, court documents state.

Rudolph told the News he expects to settle the matter out of court soon.

He’s already signed a loan agreement that will allow him to pay off his debts, he said.

But the money’s been slow coming. Rudolph expected it to flow several weeks ago, he said.

He now expects the money to come through next week, he said.

He blames the global credit meltdown for his cash-flow problems.

“Money isn’t flowing like it used to,” said Rudolph.

“It’s just a sign of the times. These things happen.”

Contact John Thompson at

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