TORONTO, March 14, 2022 /CNW/ - Superior Gold Inc.
("Superior Gold" or the "Company") (TSXV: SGI) (OTCMKTS: SUPGF)
provides an update regarding the litigation between its
wholly-owned subsidiary, Billabong Gold Pty Ltd ("Billabong") and
Vango Mining Limited (ASX:VAN) and subsidiary Dampier (Plutonic)
Pty Ltd (collectively, "Vango") with respect to tenements to the
northeast of and separate from the Company's 100% owned Plutonic
Gold mine.
As first disclosed in the Company's November 8, 2018, news release, Billabong claimed
breaches by Vango of the terms of an Ore Treatment Agreement
("OTA"), under which Billabong held rights of first refusal
("ROFR") in respect of tenements within Vango's Plutonic Dome
project in Western Australia
("Tenements"). Billabong claimed that these rights were breached
with respect to certain of Vango's intended and actual transactions
in 2016 and 2017, which purported to deal with one or more of the
Tenements subject to the ROFRs.
Final orders were provided by the Supreme Court of Western Australia in Civil ("the Court") on
February 11, 2022, whereby Superior
Gold was largely successful in the litigation, with the Court
agreeing that Vango breached its obligations under the OTA in
respect of the 2017 transaction. While Superior Gold was not
ultimately successful as regards the 2016 transaction, it has filed
an appeal and remains confident that its position will ultimately
prevail. A date for the appeal on the 2016 transaction has not yet
been set.
Orders pertaining to 2017 Transaction
The Court ordered Vango to make offers to Billabong with respect
to its K2 Tenements. On March 11,
2022, Billabong elected to accept the following binding
offer, the key terms of which are:
- Billabong may earn an interest in the K2 Tenements ("Farm-in
Interest") by contributing up to the lesser of 50% of the Capital
Expenditures ("CAPEX") or AUD$3.0 million to the development of the
K2 Tenements as agreed to by a committee consisting of equal
numbers of Vango and Billabong representatives with each party
entitled to one vote.
- Billabong's Farm-in Interest shall be calculated on the basis
of Billabong's contribution to CAPEX ($X) as per the ratio of
$X/$CAPEX or 50% (whichever is the lesser).
- At the completion of Billabong's expenditure Vango must
transfer to Billabong the legal and beneficial interest in the K2
Tenements equal in percentage to the Farm-in Interest.
- Billabong and Vango may enter good faith negotiations to
conclude a more detailed Mining Agreement that expressly
includes a right for Billabong to be offered within 12 months from
signing the Mining Agreement, the right to earn the same interest,
and in the same manner as provided for above, over the other
tenements acquired by Vango in 2016 from Dampier Gold Ltd (now
Zuleika Gold Limited) that are to be developed by Vango.
Order Pertaining to Legal Costs
The Court also ordered Vango to pay 80% of Billabong's taxed
costs of the proceedings, including all reserved costs.
Chris Jordaan, President, and CEO
of Superior Gold stated that "the Court's decision and orders make
clear that Vango's breach of its obligations has real-world
consequences, not the least of which is the ability of Billabong to
earn a joint venture interest in the K2 Tenement, and potentially
over the other Tenements held by Vango. We trust that on appeal,
Vango will also be found liable for its breach of the OTA in
respect of the 2016 transactions. Both before and after the
commencement of the proceedings, Billabong has been willing to
engage in sensible discussions with Vango to come to an arrangement
to unlock considerable and obvious value for both parties. While
Billabong would have much preferred a commercial rather than legal
outcome, Billabong hopes, in light of the decision and orders made
against Vango, that Vango will see the sense in a commercial way
forward."
About Superior Gold
Superior Gold is a Canadian-based gold producer that owns 100%
of the Plutonic Gold Operations located in Western Australia. The Plutonic Gold
Operations include the Plutonic underground gold mine and central
mill, numerous open-pit projects including the Plutonic Main Pit
push-back project, the Hermes open pit projects, and an interest in
the Bryah Basin joint venture. Superior Gold is focused on
expanding production at the Plutonic Gold Operations and building
an intermediate gold producer with superior returns for
shareholders.
Continue to Follow, Like and Watch our progress:
Web: www.superior-gold.com | Twitter: @SuperiorGoldInc |
Facebook: SuperiorGoldInc | Instagram: SuperiorGoldInc | LinkedIn:
Superior Gold Inc. | YouTube: Superior Gold
Forward-Looking Information
This news release contains "forward-looking information" within
the meaning of applicable securities laws that are intended to be
covered by the safe harbours created by those laws.
"Forward-looking information" includes statements that use
forward-looking terminology such as "may", "will", "expect",
"anticipate", "believe", "continue", "potential" or the negative
thereof or other variations thereof or comparable terminology.
Forward-looking information includes information with respect to
guidance as to the outcome of the appeal on the Vango litigation.
By identifying such information in this manner, the Company is
alerting the reader that such information is subject to known and
unknown risks, uncertainties, and other factors that may cause the
actual results, level of activity, performance, or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date the statements are made. Furthermore,
such forward-looking information involves a variety of known and
unknown risks, uncertainties, and other factors which may cause the
actual plans, intentions, activities, results, performance, or
achievements of the Company to be materially different from any
future plans, intentions, activities, results, performance or
achievements expressed or implied by such forward-looking
information.
The Company cautions that there can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, investors should not
place undue reliance on forward-looking information as no assurance
can be given that any of the events anticipated by the
forward-looking information will transpire or occur, and if any of
them do so, what benefits the Company will derive therefrom. Except
as required by law, the Company does not assume any obligation to
release publicly any revisions to forward-looking information
contained in this news release to reflect events or circumstances
after the date hereof.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accept responsibility for the adequacy or accuracy of this
release.
SOURCE Superior Gold