News Column

Tolima Gold Inc. Defeats Legal Action in Colombia

Mar 20 2013 12:00AM

Marketwire

LogoTracker

TORONTO, ONTARIO -- (Marketwire) -- 03/20/13 -- Tolima Gold Inc. ("Tolima" or the "Company") (TSX VENTURE: TOM) is pleased to announce that today the Segovia-Antioquia Circuit Court, following a petition from its wholly owned subsidiary Remedios Gold SAS ("Remedios Gold"), nullified the decision of February 14 2013 by the Segovia Municipal Court ordering Remedios Gold to deliver possession of the San Pablo mine (mining title 7299 or the "Mining Title") and related equipment to a certain plaintiff in a lawsuit over the validity of a 1993 assignment of the Mining Title by an indirect predecessor of Remedios Gold. As a result of this decision, Remedios Gold regained possession of the mining title and all infrastructure and equipment in the area, including its processing plant. The ruling by the Circuit Court completely upheld Remedios Gold's claims, recognized Remedios Gold as the sole, exclusive and registered holder of the Mining Title and ordered the Municipal Court not to interfere with the rights of Remedios Gold in connection with any proceedings to which Remedios Gold is not a party.

Following this decision, Remedios intends to resume operations at its processing plant located in the area of Mining Title 7299 before the end of the week. Before suspension of operations last Tuesday March 12, the plant had been processing around 75 tpd. The Company expects to reach such processing level by next week.

Tolima will continue to defend its rights to the Mining Title before any higher courts and against any new actions from third parties affecting the Mining Title, as required. It believes that the lawsuit by an alleged former owner of the Mining Title has no grounds. Therefore, Tolima intends to vigorously defend its rights and property in this case. Additionally, under the terms of the share purchase agreement pursuant to which Tolima acquired the shares of Remedios Gold, the vendors (the Minatura Group of companies) have the obligation to indemnify Tolima and hold it harmless against any and all actions or damages deriving from legal action against Remedios Gold's properties, which includes damages resulting from the legal proceedings described above. Tolima also intends to rely on and enforce this indemnity as required.

The Mining Title covers a little over 100 hectares, which represents less than 1% of the Company's exploration holdings in the Remedios mining district and a little over 0.1% of the Company's total exploration ground in Colombia.

Jaime Lopez, CEO of Tolima, stated: "This ruling by the Segovia-Remedios Circuit Court confirms our trust and confidence in the Colombian judicial system and provides a solid basis for the development of our projects in the San Pablo area. We continue to advance our exploration and development plans for each of our areas, all of which represent great potential to host sizeable metals deposits."

Information Concerning Tolima

Tolima is a gold exploration, development and production company with interests in mining properties in Colombia. Tolima's properties include the Remedios Project, located in the Remedios/Segovia mining district in the Antioquia Department of Colombia, with over 11,500 hectares of exploration ground, two mines (the "San Pablo" and "Bartola" mines) and an operating gold processing and recovery plant located in the area of "San Pablo" with a capacity of 100 tons per day; the ANCAL Project, located in the Marmato/Caramanta district of the Caldas and Antioquia Departments of Colombia, including more than 28,000 hectares of exploration ground; and the NORTOL project, located in the Tolima Department of Colombia, including more than 48,000 hectares of exploration ground and the "Papayo" mine.

Forward-looking statements

This news release contains certain "forward-looking statements" including, in particular, Tolima's expectation regarding the success of impeding Remedios Gold's eviction from the San Pablo mine and processing plant, preserving legal title to Remedios Gold's property, reliance on contractual indemnities and the resumption of operations at the processing plant. Legal action and the enforcement of contractual rights are complex legal matters, the outcome of which is uncertain and subject to a number of risks, legal interpretation and expenses. Tolima management has expressed forward-looking statements relating to the strength of its, and Remedios Gold's, legal position based on its understanding of such legal matters, in consultation with its legal counsel. In addition, forward-looking statements with respect to the resumption of operations at the processing plant are also subject to economic factors and assumptions regarding the profitability of operations described in previous press releases and Tolima's MD&A. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, Tolima disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

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.



Contacts:
Tolima Gold Inc.
Andrew DeFrancesco
(416) 362-4441

Tolima Gold Inc.
Lisa-Marie Iannitelli
(416) 362-4441





Source: Marketwire


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters