2013-01-21 14:35:54 -
Reno, Nevada – January 21, 2013 – EMC Metals Corp. (the “Company” or “EMC (TSX: EMC) advises that the parties to the dispute over the Nyngan Scandium Project the Project, EMC Metals and Jervois Mining Limited (JRV), will commence formal court hearings in the Supreme Court of Victoria, in Melbourne, Australia, beginning February 4, 2013. All pleadings and witness statements have now been finalized and filed with the court, discovery continues, and a final pre-trial session with the Judge concerning trial process orders is scheduled for January 25th. The pleadings are available from the Court in Melbourne.
EMC previously announced on February 29, 2012, that it received notice of rejection from JRV stating that EMC did not meet a condition of
its 50% earn-in under the February 2010 Exploration and Joint Venture Agreement (the “Agreement, consequently losing any right to earn in or participate in the Project. JRV also asserted that the Agreement was terminated.
EMC maintains that all requirements for 50% earn-in were in fact met, and intends to vigorously prosecute its defense and counterclaim, seeking relief that includes both a declaration that EMC satisfied the earn-in conditions required, and a substantial damages award (up to US$100M) to compensate for loss and damage from wrongful termination.
In efforts to settle this matter, EMC has entered ‘without prejudice’ discussions with JRV to consider resolution ideas, participated in an unsuccessful court-ordered mediation, and subsequently made a public offer to JRV to buy out the Project, which was allowed by JRV to expire. The upcoming court trial now remains the final process step open to EMC to pursue its rights to Project ownership. A judgment is expected in Q2 2013.
About EMC Metals
EMC owns a 100% interest in the Springer tungsten mine in Nevada, USA. The Company recently filed a NI 43-101 PEA on the Springer asset and is following a strategy of seeking a near term restart of the facility. EMC also owns a 100% interest in the Carlin Vanadium property near Carlin, Nevada. Both properties have current NI 43-101 Technical Reports filed on SEDAR, copies of which are also available on the Company website.
In early 2012, EMC’s earn-in on the Nyngan Scandium Project was rejected by our Australian JV partner, Jervois Mining Limited. We maintain that all earn-in conditions outlined under the JV Agreement were met, and we have now completed all legal pleadings and submissions required for a challenge to this rejection in court in Melbourne, Victoria, Australia, where hearings are scheduled to commence in February, 2013.
The technical information in this news release has been reviewed by Willem Duyvesteyn, a Qualified Person as defined by National Instrument NI 43-101. Mr. Duyvesteyn is employed by EMC Metals Corp.
For additional information please contact:
EMC Metals Corp.
Investor Relations-Nevada: (775) 355-9500 or firstname.lastname@example.org
Sara Boatright Patterson, Windward Global, Charlotte, NC -1-704-588-8600
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
This press release contains forward-looking information that does involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements regarding long term prices for tungsten, our ability to find and retain qualified management and key technical persons to operate the tungsten project, our ability to raise the necessary capital to fund a restart of mining operations, the short term or long term economic feasibility of tungsten production at our Springer facility, and in general statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. Forward-looking information in this press release is based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice, and by other risk factors disclosed in our public filings. Except as required by law, EMC assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
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Source: EMC Metals Corp. (TSX: EMC) www.emcmetals.com
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