VANCOUVER, May 5 /PRNewswire/ - Guyana Frontier Mining Corp.
("Guyana Frontier") wishes to
inform its shareholders of a title dispute affecting a small
portion of the Sardine Hill property ("Sardine Hill") in
Guyana, South America. Mariwa Mining Company Inc.
("Mariwa"), a private Guyanese corporation, is the holder of a
prospecting licence comprising the Sardine Hill property. Guyana
Frontier has an option to acquire all of the issued and outstanding
shares of Mariwa by making cash and share payments over a period of
five years.
Guyana Frontier subsequently granted an option
to Mulgravian Ventures Corporation ("Mulgravian"), a private
Canadian corporation, whereby Mulgravian can earn a 51% interest in
the shares of Mariwa by completing certain exploration expenditures
and completing a private placement with Guyana Frontier.
On March 23, 2011,
Guyana Frontier was named as a co-respondent in a lawsuit filed by
Ignatius Timmerman ("Timmerman") against the Guyana Geology and Mines Commission (the
"GGMC"), Odinga Lumumba - one of the
principals of Mariwa - and Guyana Frontier. Timmerman claims to own
the rights to five mining claims (the "Alleged Claims") totalling
approximately 138 acres (55.8 ha.) within the area of the Sardine
Hill prospecting licence. The total area of the Sardine Hill
prospecting licence is 10,427 acres (4,220 ha.), and the Alleged
Claims overlap a portion of the known mineralized area of the
Sardine Hill property. Both the GGMC and Mariwa contest the
legality of the Timmerman mining claims. In August 2010, the GGMC determined the Timmerman
mining claims to be invalid and delivered a cease work order to
Timmerman. On March 17, 2011
the GGMC carried out an eviction of Timmerman's mining equipment
and personnel from Sardine Hill.
Timmerman subsequently filed a lawsuit against
the GGMC, Mariwa and Guyana Frontier on March 23, 2011 seeking an order:
- confirming his rights to the Alleged Claims;
- for the return of the mining equipment seized by the GGMC on
March 17, 2011;
- to deny access to Guyana Frontier to the area of the Alleged
Claims; and
- for damages "in excess" of US$5,000 (Guyana$1.0 million) against the GGMC,
and "in excess" of US$5,000
(Guyana$1.0 million) jointly from Odinga
Lumumba and Guyana Frontier - the amount "in excess" is
unspecified in both cases.
Timmerman was granted an interlocutory
injunction denying Guyana Frontier
access to the area of the Alleged Claims. The interlocutory
injunction was granted on an ex parte basis, and is in effect until
the next hearing date. On April 13,
2011, a court hearing was held in Guyana and the matter was adjourned until
May 11, 2011.
In April 2011,
Guyana Frontier completed a diamond drilling program at Sardine
Hill for a total of 3,076 metres in 18 holes, which achieved the
planned meterage announced in a news release on December 16, 2010. Complete analytical results
will be released after their receipt, compilation and
interpretation.
The technical work disclosed in this document
was planned and supervised by David
Bending, M.Sc., P.Geo., President and CEO of Guyana
Frontier, who is a Qualified Person as defined in National
Instrument 43-101, and is responsible for all technical information
contained in this news release.
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 release contains "forward-looking
statements" within the meaning of applicable Canadian securities
legislation, including predictions, projections and
forecasts. Forward-looking statements include, but are not
limited to, statements that address activities, events or
developments that Guyana Frontier expects or anticipates will or
may occur in the future, including such things as the results of
litigation in respect of the Sardine Hill property, future
exploration activities on the Sardine Hill property, the receipt of
analytical results of recent exploration activities on the Sardine
Hill property, future business strategy, competitive
strengths, goals, expansion, growth of Guyana Frontier's
businesses, operations, plans and with respect to exploration
results generally, the timing and success of exploration activities
generally, permitting time lines, government regulation of
exploration and mining operations, environmental risks, title
disputes or claims, limitations on insurance coverage, timing and
possible outcome of any pending litigation and timing and results
of future resource estimates or future economic studies.
Often, but not always, forward-looking
statements can be identified by the use of words such as "plans",
"planning", "planned", "expects" or "looking forward", "does not
expect", "continues", "scheduled", "estimates", "forecasts",
"intends", "potential", "anticipates", "does not anticipate", or
"belief", or describes a "goal", or variation of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be
achieved.
Forward-looking statements are based on a
number of material factors and assumptions, including, the result
of litigation proceedings, that laboratory and other related
services are available and perform as contracted, drilling and
exploration activities, that contracted parties provide goods
and/or services on the agreed timeframes, that equipment necessary
for exploration is available as scheduled and does not incur
unforeseen break downs, that no labour shortages or delays are
incurred, that plant and equipment function as specified, and that
no unusual geological or technical problems occur.
Forward-looking statements involve known and unknown risks, 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,
negotiations with parties to litigation matters, the interpretation
and actual results of current exploration activities; changes in
project parameters as plans continue to be refined; future prices
of minerals; possible variations in grade or recovery rates;
failure of equipment or processes to operate as anticipated; the
failure of contracted parties to perform; labour disputes and other
risks of the mining industry; delays in obtaining governmental
approvals or financing or in the completion of exploration, as well
as those factors disclosed in the company's publicly filed
documents. Although Guyana Frontier 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.
SOURCE Guyana Frontier Mining Corp.