Thursday, January 20, 2011
BANDERA ANNOUNCES FINAL RULING ON THE APPLICATION FOR THE REVIEW OF THE LABOR CASE IN CONNECTION ...
BANDERA ANNOUNCES FINAL RULING ON THE APPLICATION FOR THE REVIEW OF THE LABOR CASE IN CONNECTION WITH ITS PROPERTIES IN MEXICO
Bandera Gold Ltd. (the “Company”) is pleased to announce that the Second Collegiate Labor Court of the Third Circuit, based in Guadalajara (the “Court”), issued a definitive and final ruling on the appeal in connection with the application for review of the Amparo granted to the Company by the Third District Court of the State of Jalisco.
The Court has ruled that the auction and adjudication of the “Cinco Minas” and “Gran Cabrera” mining properties (the “Mining Properties”) to a former employee of Minera San Jorge SA de CV (“MSJ”) and Minera Amajac SA de CV (“MA”) was conducted in violation of the Company’s rights, and has ordered the Mining Properties be re-registered to MSJ, with the Company’s embargo (lien rights) registered against them.
The Mining Properties had been originally embargoed and secured by the Fifth Mercantile Court of the State of Jalisco in order to guarantee the outcome of the legal action instituted by the Company against MSJ, MA and others, for breach of the Option Agreement for the Company to earn-in a 60% interest in the Mining Properties.
Subsequently, a former employee of MSJ and MA, sued MSJ and MA before a labor court for unpaid labor benefits. In the course of this legal action, the labor court had the Mining Properties embargoed, as a preventive measure to guarantee funds for payment of the claimed amounts. The labor court finally found for the claimant and put the Mining Properties out for auction. However, the labor court did not notify the Company (as holder of the first embargo on the mining properties) or the Fifth Mercantile Court in advance of the actual auction, thus violating the Company’s right to participate in the auction or to file any objections against it.
With this decision of the Second Collegiate Court, the conducted auction was voided and title to the Mining Properties has been ordered returned and recorded to MSJ, with the Company’s existing embargo registered against the Mining Properties to protect the Company’s interests pending the outcome of the judicial action instituted by the Company against MSJ and others.
In a related action, three other former employees of MSJ have also filed a labor complaint against MSJ and others, and requested a preventive embargo of the concessions, which was granted by the labor court. The Company’s embargo granted by the Fifth Mercantile Court continues to be registered against the Mining Properties.
The Company is very pleased with this decision; it places our mining rights back to where we can secure our tenure under our option agreement once our mercantile claim is finally confirmed. It also allows us to participate in any further auction for the properties and the potential to acquire them independent of the mercantile case.
Bandera Gold Ltd. is a Junior Canadian Exploration Company whose corporate strategy is to build shareholder value by finding and developing overlooked and undervalued mineral properties in North America and South America. The Company’s core focus will be the continued exploration and advancement of the Cinco Minas property in Mexico to production, exploration of the Gran Cabrera property in Mexico and the exploration of the Belmira property in Colombia.
On behalf of the Board
For further information please contact:
Kelvin Williams, President (780) 465-4129
Or Micro Cap et al, Investor Relations at: (877) 642-7622
E mail: firstname.lastname@example.org
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Information provided herein contains forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by Bandera at the time of preparation, may prove to be incorrect. Actual results achieved will vary from the information provided and the variations may be material. There is no representation by Bandera that actual results achieved will be the same in whole or in part as those indicated in the forward-looking statements.