NEWS RELEASE
Symbols: AGM.V
April 28, 1999 AROYF.OTC Bulletin
Board
The Supreme Court of British Columbia was scheduled to hear an application this morning, April 28, 1999, filed by Newmont Gold Company of Denver, Colorado ("Newmont") to set aside the January 11, 1999 Order of the Supreme Court of British Columbia adding Newmont as a Defendant to the Action commenced by Ag Armeno Mines and Minerals Inc. ("Armeno") against the Indonesian company PT Pukuafu Indah ("PI") and its principal Jusuf Merukh ("Merukh"). Although counsel representing both Armeno and Newmont were prepared to proceed this morning, the application could not be heard because of a shortage of available judges. The application has been rescheduled to June 14, 1999.
In the Action Armeno is claiming damages against PI and Merukh for breach of a May 28, 1998 Agreement through which PI and Merukh granted an option to Armeno to purchase 90% of PI's interest in the Batu Hijau Mining Project on the Island of Sumbawa, Indonesia. The Supreme Court of British Columbia has already granted Armeno default judgment against PI and Merukh on January 7, 1999 and January 13, 1999 respectively with damages and costs to be assessed. Armeno is claiming damages against Newmont for interfering in the performance by PI of the May 28, 1998 Agreement and for inducing PI to breach the Agreement.
Armeno is disappointed the Application was not heard today and wishes to proceed against Newmont as quickly as possible. Armeno is confident Newmont's application is without merit and that the Order adding Newmont as a party to the action will be affirmed on June 14, 1999.
Presently ranked as one of the largest start-up mining projects in the world, BATU HIJAU contains a resource of 7.25 million tonnes (15.98 billion pounds) of Copper and 16.5 million ounces of Gold. The BATU HIJAU mining project, which is currently at an advanced stage of construction and development, is expected to be completed by October 1999. Production from BATU HIJAU will be in the form of Copper Concentrate and is scheduled to commence in December 1999. It is reported that the BATU HIJAU mining project will produce an average of 245,000 tonnes (540 million pounds) of Copper and 564,000 ounces of Gold annually for a period of 25 years. Furthermore, the projected cash operating costs are in the lowest quartile of world producers.
PI has a 20% interest in the BATU HIJAU mining project. The other parties are Newmont Indonesia Limited, a subsidiary of Newmont, as to a 45% interest and Sumitomo Corporation as to a 35% interest. Newmont Indonesia Limited is the Manager of the BATU HIJAU mining project.
On behalf of the Board of
Ag Armeno Mines and Minerals Inc.,
"Bedo H. Kalpakian" ___________________________
Bedo H. Kalpakian
President
THE INFORMATION CONTAINED HEREIN HAS NEITHER BEEN APPROVED NOR DISAPPROVED BY ANY STOCK EXCHANGE ON WHICH THE COMPANY'S SHARES ARE LISTED. NR/NRAPR28.W51
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