Aber Resources Ltd. announces Camsell Lake project dispute
VANCOUVER, March 15 /CNW/ - ABER RESOURCES LTD. (TSE-ABZ, NASDAQ-ABERF)
announces that a dispute has developed regarding the exercise of Aber's rights
as joint venture owner in the Camsell Lake Diamond Project, located about 220
kilometres northeast of Yellowknife, NWT.
The dispute involves Aber's participation in the proposed $12 million
exploration budget for 1999. In December 1998, when the 1999 budget was
discussed and adopted by Aber and the project operator at a Joint Venture
Management Committee meeting, Aber informed the operator that Aber would pay
its share of the budget and participate in the program, including the bulk
sampling of a diamond-bearing dyke at Snap Lake. In numerous discussions since
then, Aber has continued to inform the operator of Aber's participation in the
program.
Despite that, Aber has been informed by the Camsell Lake project operator
that it takes the position that Aber has been deemed to have elected not to
participate in the 1999 program and budget and that the operator intends to
pay for the entire 1999 program and thereby reduce Aber's 32.24% interest in
the project. Aber has disputed the operator's position and is preparing to
commence litigation to protect Aber's 32.24% ownership interest.
The project operator's position appears to be based on the assertion that
notice of Aber's intention to participate in the program was not given in
writing, in strict accordance with the terms of the Joint Venture Agreement.
Aber asserts that the operator is estopped from taking that position or that
alternatively, Aber is entitled to relief from any alleged forfeiture by
reasons of the provisions of British Columbia legislation known as the Law and
Equity Act. That statute gives the Court the power to relieve a party from the
consequences of a penalty or forfeiture. The project operator does not accept
Aber's position and Aber has instructed counsel to commence proceedings
forthwith to enforce its rights.
The Camsell Lake Project is approximately 100 kilometres south of the
Aber's principal asset, the Diavik Diamonds Project at Lac de Gras. Aber has a
40% interest in the Diavik Diamonds Project.
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For further information:Kenneth G. Hanna, President and Chief
Executive Officer, R. Michael Jones, Vice-President, Corporate Development or
Alan J. Bayless, Manager, Investor Relations and Corporate Affairs (604)
682-8555, www.aber.ca |
