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Home / News / THE STATE COURT OF JALISCO, MEXICO, COMMERCIAL DIVISION GRANTS PREVENTIVE MEASURES IN FAVOR OF BANDE
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| BGL-TSXV April 1, 2008 THE STATE COURT OF JALISCO, MEXICO, COMMERCIAL DIVISION GRANTS PREVENTIVE MEASURES IN FAVOR OF BANDERA GOLD LTD. RELATING TO THEIR DISPUTE WITH MSJ & GEORGE S. BARNETT On January 4 and 7, 2008, Bandera Gold Limited (?BGL?) issued news releases concerning the property dispute that is ongoing with our joint venture partner, Minera San Jorge, S.A. de C.V. (?MSJ?). We indicated at that time that our legal counsel had reviewed all of the documentation regarding our signed ?Option Agreement?, considered the circumstances of the situation that had arisen and concluded that the issues at hand represented a deliberate breach of contract by MSJ and George S. Barnett. Since that time, representatives of our legal team in Guadalajara, Caracas and Calgary have been working diligently to quantify and enforce our position regarding the legally binding agreement that is in place between BGL and MSJ. There has been little communication between representatives of BGL and MSJ since our January announcements. BGL is aware that the 60 tonne per day test production mill has been operating throughout the dispute and that a substantial amount of silver/gold doré has been produced. There has not been any documentation forwarded to BGL by MSJ or its sister companies regarding this doré production and/or the disposition of same. On February 26, 2008, our legal counsel in Guadalajara filed a lawsuit, with ?preventive measures? that were applied for and granted on March 7, 2008, by a Judge in the State Court of Jalisco, Mexico, Commercial Division, Guadalajara, Mexico, naming: Minera San Jorge, S.A. de C.V.; Campânia Minera Cinco Minas, S.A. de C.V.; George Barnett Salazar, also known as George Salazar Barnett, also known as Jorge Barnett Salazar; Minera Amajac, S.A. de C.V.; and the Public Mining Register as defendants. On March 7, 2008, the State Court, Commercial Division of Guadalajara, Mexico, issued preventive measures in favor of the Company consisting of: (i) The encumbrance of assets of the defendants for an amount of CAD $6,000,000; (ii) the registration of the lawsuit on the files of each of the mining concessions subject to the Option Agreement before the Public Mining Register in Mexico City; and (iii) a prohibition for Mr. Barnett to leave the Court?s jurisdiction (the Mexican State of Jalisco) until this case is settled, unless having appointed an Attorney to act on his behalf while he is away. On March 28, 2008, Mr. Barnett and the company offices of MSJ and Amajac were served with the lawsuit. The defendants have nine (9) business days to reply to the suit in defense of the action or be considered to be in default. In order to guarantee any damages to the defendants in case the lawsuit is dismissed, BGL was required by the Court to post a bond of 6,000,000 Mexican pesos (approximately [CAD $600,000]). In order for these preventive measures to be put in place and stay applicable, BGL was required to place a Six Hundred Thousand dollars (CAD $600,000.00) warranty bond in order to respond to any damages and injury that the defendants may suffer as a result of the said preventive measures being put in place. In order for the co-defendants to have the preventive measures noted above removed, they will have to provide a warranty bond (or cash in lieu of) ranging from CAD $600,000.00 and CAD $1,200,000.00 (the exact amount will be determined by the judge in due course). The management of Bandera Gold Ltd. and its legal team will continue to vigorously protect our shareholders interest in the Cinco Minas and Gran Cabrera properties and our rights under the Option Agreement. Additional information regarding the suit will be released in the near future. 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. By partnering with an experienced mining and mineral exploration entity, 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 Kelvin Williams President and CEO For further information please contact: Kelvin Williams, President and CEO (780) 465-4129 Web: www.banderagold.com Or Micro Cap et al, Investor Relations at: (877) 642-7622 E mail: info@microcapetal.com The TSX Venture Exchange has not reviewed and does not accept 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. |
