Placer Dome Inc - News Release
Position on Las Cristinas unchanged by Supreme Court decision
Placer Dome Inc PDGShares issued 2392276951997-04-16 close $23.2Wednesday Apr 16 1997News ReleaseMr Hugh Leggatt reports The Supreme Court of Venezuela issued a decision on April 15 1997, ordering publication in the Official Gazette of its present ruling, and previous rulings in 1991 and 1996, regarding the transfer of ownership in 1986 of Cristinas concessions 4 and 6, site of the proposed Las Cristinas gold mine in which Placer Dome Inc has a 70% interest. The court decision also requires the publication of the document by which Mr Ramon Torres transferred Cristinas 4 and 6 to Inversora Mael, CA. The decision, and previous rulings, do not affect Placer Dome's rights with respect to Cristinas 4 and 6. Cristinas concessions 4 and 6 were granted in 1964 by the Venezuelan Ministry of Energy and Mines to a Mrs Lemon for a term of 25 years. Mrs Lemon transferred the concessions to Mr Torres in 1986, who later re-sold them to Mael. In 1988, by resolution No 29, MEM refused to recognize the transfer from Mr Torres to Mael for procedural reasons, and Mael petitioned the Supreme Court for an order to set aside MEM's resolution. The concessions reverted to MEM in 1989 because they had either expired or been revoked for failure to pay taxes and to commence production within the time specified by the Mining Law. In January 1991, rights to explore and exploit gold in the Guayana region were granted by MEM to Corporacion Venezolana de Guayana, a state company. In 1992, CVG entered into a work contract with Minera Las Cristinas, CA (Minca), (PDG 70%, CVG 30%) for areas that included Cristinas 4 and 6. The 1991 and 1996 Supreme Court decisions dealt with the procedural issue of whether notice had been published as required by law when the concessions were transferred from Mr Torres to Mael and not with the issue of underlying rights of tenure. The April 15 ruling notes that the publication of the transfer has still not taken place and orders that this decision and its prior rulings be officially gazetted. This has no bearing on the principal issue of Minca's right of tenure which has been repeatedly confirmed by MEM. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
Dan Byrne |
