FOR : World Wide Minerals Ltd.
August 7, 2002
World Wide And Nuclear Fuel Resources Report On Decision Of US Federal Court Of
Appeals In US$1.0 Billion Lawsuit
WASHINGTON, DISTRICT OF COLUMBIA--World Wide Minerals Ltd. and its subsidiary,
Nuclear Fuel Resources Corporation, announced today that the US Federal Court
of Appeals in Washington, D.C. issued a decision on Friday, August 2, 2002 in
the US$1.0 billion lawsuit against Kazakhstan and Nukem, Inc. The Court found
that the trial judge's earlier dismissal of the Company's civil conspiracy
claims against Nukem for lack of personal jurisdiction had been based on the
judge's misunderstanding of certain facts. The Court of Appeals remanded those
claims to the trial judge for further deliberation.
The Court of Appeals also affirmed the trial judge's dismissal of the Company's
claims against Kazakhstan, albeit on somewhat different grounds. The Court
disagreed with the trial judge's opinion that Kazakhstan had fully waived its
sovereign immunity. Instead, the Court agreed with the judge that the case
hinged on "acts of state" (namely, refusal to issue export licenses, and
confiscation of assets without compensation), which were acts with which the
Court would not interfere.
The Company is reviewing with its legal counsel the further steps that can be
taken in the lawsuit, including applying for leave to reargue the appeal before
the full bench of the Court of Appeals, applying for leave to appeal to the
Supreme Court of the United States and continuing to pursue the claims against
Nukem before the trial judge. The Company will also consider further steps to
be taken to collect the sovereign debt owing to it by Kazakhstan arising out of
a loan made in 1996-1997 to revitalize the uranium industry of that country.
That loan, with accrued interest and collection costs, now amounts to over
US$29 million.
Paul Carroll, President and CEO of World Wide, reiterated that "what happened
to us, with our good faith investment of millions of dollars and with our
operations in Kazakhstan, should be a warning to all international investors.
The effect of this is that, if the Court decision is allowed to stand, a
sovereign state can refuse to repay its debts and can cancel commercial
contracts, without paying compensation. This would be a scandalous result. We
certainly hope that other international investors, such as in the petroleum
sector, will look long and hard at this result before making investments in
emerging countries such as Kazakhstan."
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FOR FURTHER INFORMATION PLEASE CONTACT :
World Wide Minerals Ltd.
Paul A. Carroll
President and CEO
Phone: (416) 369-7217
Fax: (416) 369-6088
pcarroll@worldwideminerals.com
INDUSTRY : MNG
SUBJECT : LAW |
