Barrick Gold Corp. was hit with another potential class-action lawsuit from investors, alleging that the Canadian miner misrepresented troubles with its Pascua Lama gold project in the Andes.
The suit, which has yet to be certified as a class action, was filed in the Ontario Superior Court and seeks $6-billion in damages, including for losses related to the drop in Barrick's shares.
The lawsuit alleges that the Toronto-based company omitted information and misled investors about the progress and feasibility of Pascua Lama.
The mountaintop project, which sits on the border of Argentina and Chile, was initially expected to cost $3-billion to build. But costs eventually jumped to more than $8.5-billion.
Barrick has since halted construction and recorded about $6-billion in writedowns related to Pascua Lama.
The lawsuit cites press releases and statements made from various Barrick officials from 2009 through 2013.
None of the allegations have been proven in a court.
Barrick said: "The company is aware that a notice of action has been filed in the Ontario Superior Court of Justice. Barrick disputes the allegations, and will defend itself against any lawsuit vigorously."
The suit was filed by Koskie Minsky LLP, a well-known class-action law firm in Canada.