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Home / News / UPDATE OF LEGAL PROCEEDINGS RELATING TO BANDERA?S DISPUTE WITH MINERA SAN JORGE AND GEORGE S. BARNET
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| BGL-TSXV May 14, 2008 UPDATE OF LEGAL PROCEEDINGS RELATING TO BANDERA?S DISPUTE WITH MINERA SAN JORGE AND GEORGE S. BARNETT AND OTHER DEFENDANTS After the Fifth State Court of Jalisco Commercial Division admitted Bandera Gold Ltd.?s (?Bandera?) lawsuit for hearing under the terms filed, and Bandera met (on March 28) the court?s requirement for posting of a bond, the execution of preventive measures was performed. These measures allowed liens and/or encumbrances on mining concessions and certain bank accounts owned by the defendants, and prohibited Mr. Barnett from leaving Mexico without appointing an attorney in fact. On March 28, following the execution of the preventive measures (save for the filing of the lawsuit before the Mining Registry), Minera San Jorge (?MSJ?) and the other defendants (MSJ et al) were served. On April 10, 2008 MSJ et al filed their defence claim before the court. As might have been expected, they denied all Bandera claims as well as contesting the competency of the court (claiming Arizona to be the competent court). On April 17, the Fifth State Court accepted for evaluation during the proceedings the defendants defense claims but rejected the court incompetence argument (ruling that Mexican law does not regulate transfer of a claim to a foreign court). On April 24, Bandera filed its reply in the following terms: concerning the defense denials of all Bandera claims, the legal team made reference to all translated and certified evidence already submitted and offered additional evidence to prove Bandera?s legal right to demand this trial. Concerning damages, the legal team submitted a full record of share trading taken from the TSX website from the period of January 4 through February 20, evidencing the loss of share value subsequent to the January 4 news release and the public onset of the dispute. The courts have been on a normal vacation period from May 1 through May 10. Upon resumption, the court is expected to issue a resolution accepting Bandera?s reply to the defense claim. The court will then be promoted to serve the lawsuit with the Public Registry of Mining. This may take some time, as it involves courts in Mexico City, where the Public Registry of Mining is located. Once served, the Public Registry of Mining will have nine working days to answer. If an objection is made by the Public Registry concerning Bandera requests, the Competent Court (Fifth State) will analyze it and ratify or revoke the request. Bandera?s lawyers are committed to promote this matter as expeditiously as possible. Upon compliance with the above, the evidence period shall begin, with the time period being determined by the diversity of evidence, time spent by the court to evaluate submissions, and (perhaps) appeals by the parties to the evidence offered. The court must analyze the evidence and accept or deny the dispositions based on their relevance or the form in which they were submitted. This process could also involve hearing witnesses? testimony and expert opinions and may include court visits. There may be third parties involved (bank institutions, experts) whose availability would affect the overall duration of this process. All this must be planned while considering the courts? workload and scheduling, thus making it difficult to determine how long this will take. Once all evidence is analyzed by the court, the evidence period will close and parties can proceed with the opening of the trial phase. It is unfortunate that a resolution could not be negotiated and that legal action is necessary; however, Bandera is pleased that the courts are hearing the lawsuit and will be rendering a judgment. Bandera will dedicate all necessary resources to facilitate this action and will, whenever possible and permitted, work actively for speedy results. 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 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. |
