Press Release Source: Oromonte Resources Inc.
Oromonte Resources Inc. - Adverse Ecuador Tribunal Ruling under Review
Thursday September 28, 8:44 pm ET
CALGARY, Sept. 28 /CNW/ - (TSX-V:ORR, FRA:0F6) Oromonte Resources Inc. ("Oromonte" or the "Corporation"), a Canadian corporation with offices in Calgary, Alberta and Loja, Ecuador, advises that management of the Corporation has been informed by its Ecuadorian legal counsel of a decision which has come to their attention relating to a ruling by the Tribunal Contencioso Administrativo of Guayaquil, an administrative dispute court (the "Dispute Court"), against the Ecuadorian Ministry of Energy and Mines.
The dispute, commenced by Cumbaratza S.A., to which Oromonte is not a party nor of which it was aware until being advised by Ecuadorian legal counsel, involves approximately 30,000 hectares of the Cumbaratza mining area located in Zamora, an area of Ecuador which also contains the Corporation's Nambija mining operations. The Dispute Court issued a judgement (the "Order") to:
1. declare null all of the mining titles that have been granted by the
mining authorities over the Cumbaratza area, including Nambija 1
Condominio Norte and Condominio Sur;
2. grant in favour of Cumbaratza S.A. all of the mining rights in
Cumbaratza mining concession, including the rights over the Nambija 1
Condominio Norte and Condominio Sur;
3. order the property registrar of Zamora County (the "Property
Registrar") to cancel all mining titles and mining rights over the
Cumbaratza area, including all of the rights in the Nambija 1
Condominio Norte and Condominio Sur.
Unless and until the Property Registrar acts on the Order, the rights to mining concessions and titles will not be altered and it is the Corporation's intention to continue to carry on its mining operations at Nambija.
The Corporation has been advised by its counsel that they understand the Attorney General of Ecuador has commenced an appeal of the Dispute Court Order. This appeal does not automatically suspend any action being taken by the Property Registrar due to the Order. Oromonte is currently collecting further facts on the background of the Order and actions taken or which may be taken by government authorities. In addition, Oromonte is reviewing with its counsel various legal options, as an interested party, or through other parties having interests in the region, to commence proceedings to suspend the applicability of the Order until such time as any and all appeals are finalized and to support or participate in other actions to protect its interests.
Oromonte's Ecuadorian counsel's preliminary assessment is that the Dispute Court Order violates Ecuadorian mining law and the guarantees of due process under Ecuador's constitution.
In an unrelated matter, the Corporation advises that it has received the resignation from Brian Usher-Jones as a director of the Corporation.
About Oromonte
Oromonte operates in Ecuador through its wholly-owned subsidiary Ecuaoro Resources S.A. Oromonte has recently reactivated gold production at its Nambija property and Goldstar mine. In addition, the Corporation is developing a program to identify drilling targets for the additional 33,000 hectares of mining concessions it has recently agreed to acquire, subject to government approval, in the Zamora Chinchipe region of Ecuador. These new concessions are not affected by the Order. Mr. Alex Cruz, recently appointed Vice-President of Exploration and Mine Development for Oromonte is focusing his attention on the development of a program for this new prospect, the closing of which is expected to occur within the next week.
CAUTIONARY STATEMENT
The TSX Venture Exchange does not accept responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein. The News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Oromonte, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Oromonte's expectations are exploration risks detailed herein and from time to time in the filings made by Oromonte with securities regulations.
For further information
Bruce Cottingham, CEO, Oromonte Resources Inc., Suite 525, 101-6 Ave. S.W., Calgary, AB, T2P 3P4, Phone: (403) 262-1816, Fax: (403) 262-1826 |
