by Mike Caswell
St. Elias Mines Ltd. and its president, Lori McClenahan, have launched a defamation suit in the Supreme Court of British Columbia against a number of anonymous forum posters as well as dissident leaders Gilby and Darcy Hastman. The suit complains about posts on Stockhouse and elsewhere that called Ms. McClenahan the "wicked witch of the west" and accused management of fraudulently hiding gold. St. Elias is seeking injunctions barring future messages as well as damages for defamation.
The suit comes amidst an effort by a group of Alberta dissidents to replace Ms. McClenahan and the company's existing board. The dissidents complain that management has taken significant stock-based compensation as the stock has fallen to 11 cents from $2. (The dissidents lost the vote at the company's Dec. 27, 2012, annual general meeting, but they have since filed a court case seeking to overturn the AGM results. They claim that the company unfairly disallowed their proxies, denying them a substantial victory. St. Elias has not yet responded to that case.)