W. Bruce Dunlop Limited (N.P.L.) ("Dunlop"), the vendor of certain of the claims comprising the Reed Lake Joint Venture, pursuant to an agreement signed by both parties on December 2, 2008 (the "Dunlop Agreement"). The claim seeks to compel the Directors of the Company to give up VMS' 30 per cent participating, carried to production, interest and to elect to become a non-participating party to the Reed Lake Joint Venture in order to trigger certain alleged royalty entitlements, largely benefiting Dunlop at the expense of all other VMS shareholders.
In short, it appears Dunlop wants VMS to give the claims back despite receiving $375,000 and 3,000,000 (million) shares when the deal was signed back in December 2008.
Now, I haven't reviewed the statement of claim so I'm not casting an expert opinion here - but my highly scientific analysis combining fractals and chaos theory concluded the following primary reason for the Dunlop claim: