Annulment of US$244 Million Damages Award Against Yamana Gold Subsidiary Being Appealed to Argentinean Court of Appeal
TORONTO, ONTARIO--(Marketwired - Mar 30, 2015) - Samco Gold Ltd. (TSX VENTURE:SGA) ("Samco" or the "Company") provides the following update as to the status of the breach of contract judgment against Northern Orion Resources Inc. (now named 0805346 B.C. Ltd. and owned by Yamana Gold Inc.) in Argentina.
- The Argentinean Commercial Court of Appeal's judgment of May 22, 2013 (the "Judgment") for breach of contract against Yamana Gold's subsidiary and the subsequent rejection by the Supreme Court of a request to appeal means that the Judgment is final and binding. The only outstanding issue to be determined is the quantification of the damages payable pursuant to the Judgment.
- In December 2014 a Court appointed expert arbitrator determined that the damages for breach of contract amounted to US$244 million (the "Award Calculation").
- Following an application brought by 0805346 B.C. Ltd. in January 2015 the Argentinean Lower Court annulled the Award Calculation.
- Following an application to the Lower Court Dr. Ricardo Auriemma has been granted the right to appeal the annulment of the Award Calculation to the Argentinean Commercial Court of Appeal.
- The Court of Appeal may sustain or overturn the Argentinean Lower Court's annulment of the Award Calculation. If the Court overturns the annulment, it may reinstate the initial Award Calculation or may require that the damages be recalculated.
- The Company will continue to provide updates to the market as the quantification of damages payable progresses.
Further details of the Judgment and the Company's option and participation agreement related thereto (the "Participation Agreement") are found in the Company's press releases dated October 29, 2014, February 11, 2014 and January 10, 2014. The Participation Agreement and an English translation of the Judgment, among other Court documents, were publicly filed by Samco on www.sedar.com.
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.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements which can be identified by the use of words "will", "expects", "believe", "potential", "anticipated", "goal", and phrases or statements that certain actions, events or results "may", "would", or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, assumptions, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, any further annulment or appeal of the monetary value of the damages under the Judgment as determined by an expert arbitrator; the ability and timing to effect enforcement of the Judgment; as well as those factors disclosed in Samco Gold's disclosure documents publicly available under the Company's profile on the SEDAR website at www.sedar.com. In developing the forward-looking statements herein the Company has assumed the regular functioning of the judicial system in Argentina. Although Samco Gold 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. The Company does not intend, and does not assume any obligations, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws.
Contact
Charles Koppel
Executive Chairman and Chief Executive Officer
+44 (0) 20 7647 2532
ck@samcogold.com
Daniel Thole
Marianna Bowes
Financial Communications
Bell Pottinger
+44 (0) 20 3772 2555