fin-info.com
1998-01-22 (provided courtesy of Canadian Corporate News)
Regal Goldfields President Says Government Acted without Authority
HALIFAX, NOVA SCOTIA--Regal Goldfields Limited is challenging the
Province of Nova Scotia's October 29, 1997 decision to
expropriate, without authority and without compensation, the
company's exploration permits for the Jim Campbell's Barren.
Regal alleges that the government did not have authority under the
Mineral Resources Act to revoke Regal's mineral exploration
permit. Accordingly, Regal is applying to the Supreme Court of
Nova Scotia to have these actions by the Government declared
unlawful.
Mr. Richard Brissenden, President of Regal Goldfields Limited,
says the company wants to be treated fairly.
"As a responsible publicly traded company, we have an obligation
to protect the interests of our shareholders, to challenge the
government's unlawful actions and to limit the damage of those
actions to our shareholders. In this instance, the government
revoked our valid permits without compensation and without
authority," he states.
"This legal challenge is important to Regal and its shareholders,"
continues Mr. Brissenden, "but it is also important to all other
mining and exploration companies operating in Nova Scotia and
anyone considering investing in the province." Mr. Brissenden
says he has been inspired by the tremendous community support
which Regal has received in the Cape Breton Highlands area.
Though he is encouraged by the economic opportunities in Nova
Scotia, Mr. Brissenden is concerned that the government's
inconsistent policies are discouraging investment.
The President argues that Regal has experienced inconsistent,
arbitrary and politically driven decision-making in Nova Scotia.
For example, even after Premier MacLellan's announcement that the
Jim Campbell's Barren had been re-listed as a protected site and
an October 30, 1997 letter from the Minister of Natural Resources
revoking Regal's right of access to the Barren, the government
sent renewal forms for these licences. In December 1997, Regal
paid approximately $15,000 to renew its licences in the Barren.
Regal subsequently received renewal certificates from the
Department of Natural Resources.
Why would the government renew licences it had revoked a month
earlier? Why would the government grandfather mineral licences
granted before February 9, 1993 to some companies but not to
Regal? Why would the government expropriate Regal's licences
without authority and without compensation? What message does
this send to potential investors in Nova Scotia?
Regal will proceed this spring with an exploration program in the
Cape Breton Highlands east of Cheticamp and is also determined to
explore in the Jim Campbell's Barren. Mr. Brissenden notes,
however, "I recognize that the government has the power to stop us
if they want but they must do so lawfully."
The President of Regal Goldfields Limited concludes, "we are
challenging the government to treat Regal fairly and to treat
other companies who face similar circumstances fairly."
Regal presently has 10,563,643 common shares and 2,000,000 special
warrants outstanding. The special warrants are exercisable into
2,000,000 common shares and 1,000,000 common share purchase
warrants within six business days after a receipt is issued by the
Ontario Securities Commission for a final prospectus qualifying
such common shares and warrants, or on June 23, 1999, whichever is
earlier. Each common share purchase warrant entitles the holder
to acquire one common share in the capital of Regal at an exercise
price of $0.20 per common share at any time on or before December
23, 1999.
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FOR FURTHER INFORMATION PLEASE CONTACT:
McArthur Thompson & Law
Ms. Kim West
(902) 425-1860 ext. 233
(902) 422-2368 (FAX)
NO REGULATORY AUTHORITIES OR SIMILAR BODIES HAVE APPROVED OR
DISAPPROVED OF THE INFORMATION CONTAINED HEREIN.
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