To ALL:Latest News Release
Maymac Petroleum Corporation Announces Right of First Refusal Lawsuit,
Las Cristinas
VANCOUVER, BRITISH COLUMBIA--Maymac Petroleum Corporation, (the
"Company") announces that further to the Company's news release of
August 6, 1997, the Company has commenced an action against
Richard Marquez, ("Marquez"), in the Supreme Court of British
Columbia, in order to protect its interest under the Right of
Refusal Agreement regarding the Las Cristinas Property.
HISTORY:
On August 2, 1996, the Company and Marquez entered into an
agreement (the "Agreement"), the terms of which included the
following:
(a) Marquez agreed to grant to the Company a right of first
refusal (the "Right of First Refusal"), namely the exclusive right
to acquire any and all of the properties secured or acquired by
Marquez, his agents and or affiliates, in South America or Mexico
for a period of two years from August 2, 1996;
(b) In consideration for the grant of the Right of First
Refusal, the Company paid the sum of $10,000 to Marquez.
It is the Company's position that Marquez, his agents and or
affiliates, could not enter into an agreement for a period of two
years from August 2, 1996, with respect to any properties secured
or acquired, without first offering the Company the identical
terms as contained in any such agreement.
In January of 1997, Marquez and a director of the Company, visited
South America to research properties.
Marquez represented as follows:
(a) that he was an agent for Ramon Torres, and Inversora Mael,
C.A., ("Mael");
(b) by virtue of his influence with Ramon Torres and Inversora
Mael, C.A., he could assist in negotiating the acquisition of the
Las Cristinas Properties by the Company,
(collectively, the "Representations").
While in Venezuela, in a meeting between Marquez, Ramon Torres and
the current president of the Company, Marquez offered the Company
the opportunity to purchase Mael, for the sum of US$34,600,000,
payable US$600,000 upon signing the agreement, and the balance of
US$34,000,000 due in 45 days. Based on these terms, the Company
decided not to proceed with the acquisition. Marquez, while still
bound by the Right of First Refusal Agreement, then offered Mael
to Crystallex. The purchase price according to the Financial Post
article dated June 7, 1997, was US$30,000,000 with $6,000,000 down
and the balance of $24,000,000 to be paid over a period of two
years.
At a time unknown to the Company, Marquez and/or his agents or
affiliates acquired the right and title to the Las Cristinas
Properties. Sometime between August 2, 1996 and March 3, 1997,
Marquez granted the right to acquire the Las Cristinas Properties
to Crystallex International Corporation ("Crystallex"), without
first offering the Company the right and title to the Las
Cristinas Properties, on the terms agreed with Crystallex.
In granting rights to the Las Cristinas Properties to Crystallex,
Marquez breached the Agreement. As a result of Marquez's breach
of the Agreement, the Company has suffered loss and damage.
DAMAGES CLAIMED
/T/
(a) general damages for breach of contract;
(b) special damages for breach of contract;
(c) punitive damages;
(d) interest pursuant to the Court Order Interest Act; costs; and
such further and other relief as this Honourable Court deems just.
/T/
Once Mael's claim against Placer Dome Inc. has been settled, the
Company will be evaluating further legal action it may have
against any additional companies/individuals.
On Behalf of the Board
Barry Whelan, President
/T/
Authorized Shares: 100,000,000
Issued Shares: 18,191,922
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Maymac Petroleum Corporation
Barry Whelan
President
(604) 608-1500
(604) 608-8775 (FAX)
Email: Info@Maymac.com
maymac.com
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents of
this News Release.
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