Creston's Appeal of Arbitrator's Award is Turned Down
07 May 2011 - 6:54AM
Marketwired
Creston Moly Corp. ("Creston" or the "Company") (TSX VENTURE: CMS)
advises that its appeal of an arbitrator's December 23, 2008
decision on a finder's fee has been turned down by the Supreme
Court of British Columbia (the "Court").
The Court's decision of the arbitrator's award will not
materially affect the working capital of the Company as the
liability to Sattva Capital Corp. (the "Finder") of more than
$2,600,000 has been fully provided for in the Company's accounts
and $2,609,000 was placed in trust for the payment of this
liability in 2009. At October 31, 2010, after providing for the
loss of this appeal the Company had working capital of $3,745,421
and subsequently closed an $11,500,000 financing for working
capital and continued work on developing its El Creston Project in
Sonora Mexico.
In a decision handed down on December 23, 2008, an arbitrator
ruled that Creston was required to pay $4,140,000 plus costs to the
Finder in connection with the acquisition of Creston's molybdenum
property in Mexico. The Company had entered into a finder's fee
agreement to pay a fee in the amount of US$1,500,000 in shares, or
at the election of the Finder, in cash. Creston received TSX
Venture Exchange approval to pay US$1,500,000 or the equivalent
amount in shares valued at $0.70 per share, which was the value of
the shares issued for the acquisition and a related $40,012,000
financing. The Finder, however, sought to have the fee paid in
shares at a price of $0.15 per share and referred the matter to
arbitration. In December 2008, the arbitrator found in favour of
the Finder and awarded the Finder $4,140,000 plus costs, payable in
cash. In 2009, Creston paid the undisputed US$1,500,000 portion of
the award, placed the unpaid balance of the $4,140,000 in trust and
began the process to appeal the arbitrator's decision. In November
2010, the Court heard the Company's appeal and today the Company
has been advised that its appeal has been turned down with
costs.
Management of the Company is disappointed by this development
and intends to pursue a further appeal of the decision in the B.C.
Court of Appeal.
Creston is continuing to advance the feasibility work on the El
Creston Property with an estimated completion date for the
feasibility study budgeted for mid-2011.
On Behalf of the Board of Directors
CRESTON MOLY CORP.
D. Bruce McLeod, President & CEO
Forward-Looking Statements
This document may contain "forward-looking statements" within
the meaning of Canadian securities legislation and the United
States Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made as of the date of this document
and Creston does not intend, and does not assume any obligation, to
update these forward-looking statements.
Forward-looking statements relate to future events or future
performance and reflect Creston management's expectations or
beliefs regarding future events and include, but are not limited
to, statements with respect to the completion of the private
placement and related matters. In certain cases, forward-looking
statements can be identified by the use of words such as "plans",
"expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative of these terms or comparable terminology.
By their very nature forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Creston to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, risks related to
actual results of current exploration activities; changes in
project parameters as plans continue to be refined; future prices
of resources; possible variations in ore reserves, grade or
recovery rates; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing or in the completion of development or construction
activities; as well as those factors detailed from time to time in
Creston's interim and annual financial statements and management's
discussion and analysis of those statements, all of which are filed
and available for review on SEDAR at www.sedar.com. Although
Creston has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements.
Accordingly, readers should not place undue reliance on forward
looking statements.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Creston Moly Corp. Mr. Bruce McLeod President &
CEO 604-687-7545 or (888)338-2200 (TOLL FREE) Creston Moly Corp.
Chris Curran Investor Relations 604-687-7545 or (888)338-2200 (TOLL
FREE) 604-689-5041 (FAX) Creston Moly Corp. Ken MacDonald
604-694-0005 604-689-5041 (FAX) www.crestonmoly.com
Creston Molly Corp (TSXV:CMS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Creston Molly Corp (TSXV:CMS)
Historical Stock Chart
From Jul 2023 to Jul 2024