Coloured Ties begins defamation claim against Labrador

Executive Summary

• Coloured Ties Capital Inc. and shareholder Kal Malhi have commenced a defamation claim against Labrador Gold Corp. and four of its directors/officers in the Ontario Superior Court of Justice.
• The lawsuit alleges that Labrador Gold published a false and defamatory letter to shareholders on February 2, 2026, titled "The Dissident's Motives Exposed," which allegedly used misleading imagery and inflammatory language to portray the plaintiffs as thieves and discredit their governance concerns.
• The plaintiffs are seeking injunctive relief to stop further publication of the alleged defamatory material, as well as general, special, aggravated, and punitive monetary damages.

Key Details

• Plaintiffs: Coloured Ties Capital Inc. (one of Labrador Gold's largest shareholders) and Kulwant (Kal) Malhi.
• Defendants: Labrador Gold Corp., James R. Borland, Leonidas Karabelas, Roger Moss, and Trevor Boyd.
• Jurisdiction: Ontario Superior Court of Justice.
• Alleged Defamatory Material: A letter to shareholders dated February 2, 2026, published in the name of Labrador's board of directors, titled "The Dissident's Motives Exposed: A Message From Your Board of Directors at Labrador Gold."
• Specific Allegations:
  • The letter was disseminated as campaign material urging shareholders to vote for management's proxy.
  • The content allegedly included false statements, misleading imagery, and inflammatory headings such as "Malhicious Intent."
  • Imagery allegedly depicted Mr. Malhi as a figure carrying away shareholder money from a vault, designed to portray plaintiffs as thieves, dishonest, predatory, and a threat to shareholder property.
  • The plaintiffs allege the defendants acted recklessly as to the truth, causing serious reputational harm.
• Relief Sought:
  • Injunctive relief restraining defendants from further publishing or republishing the false, misleading, and defamatory imagery and statements.
  • Monetary damages including general, special, aggravated, and punitive damages (amounts to be determined at trial).
• Context: The plaintiffs state they engaged through conventional shareholder channels to address governance and strategic concerns and allege the board invented misconduct to manipulate the proxy process.

Notable Quotes

• "This case is about truth and accountability. The plaintiffs are significant shareholders of Labrador who engaged through conventional shareholder channels to address governance and strategic concerns. No public company or board is entitled to invent misconduct or use fabricated imagery to falsely discredit shareholders and manipulate the proxy process."