Calais Resources Update

Date : 07/23/2012 @ 2:38PM
Source : Business Wire
Stock : Calais Resources, Inc. (CAAUF)
Quote : 0.05  0.0 (0.00%) @ 12:00AM

Calais Resources Update

Calais Resources, Inc. (“Calais” or the “Company”) (Pink Sheets: CAAUF), reports that on July 12, 2012, that Calais, its directors and certain other parties were served on July 12, 2012 with a petition filed in British Columbia Supreme Court (Proceeding No.S124698). In the petition, Union Mining Co LLC makes a number of allegations primarily that the directors have issued shares improperly and that a US$10 million promissory note which consolidated a number of corporate debts going back to 2003 is somehow invalid. Calais and the directors deny the allegations and have retained legal counsel to defend the company and ourselves against the erroneous and outlandish claims in the lawsuit and note that the Plaintiff has an almost insignificant investment in Calais and is believed to be bringing the petition against the directors for ulterior motives related to a dispute regarding an ore milling agreement involving Union and control of Calais' mining assets in Colorado and Nevada. The transactions about which the petitioners complain have all been fully disclosed in audited financial statements and other SEC filings covering the period from May 31, 2005 forward available to anyone at www.sec.gov and at www.sedar.com. A more comprehensive disclosure of the lawsuit and the Company's defenses to it will be made in the next few days when the Company's full defense and counterclaim is filed with the Court.

David K. Young, the Company’s President and acting CEO, stated, “The Board of Directors and Management are taking the legal action very seriously and will reserve our rights and those of the shareholders and vigorously defend our company and assets to the fullest extent of the law in Canada and the US. I’d like to take this opportunity to thank our loyal shareholders, our valued vendors, and our dedicated employees. Calais Resources is committed to continue to operate our company and gold and silver mining operations in a professional and businesslike manner using best management practices for the benefit of our shareholders and employees.” Calais is making plans to hold a shareholders meeting later on this fall. Details as to the date, time and place will be announced soon.

About Calais

Calais Resources is a mining company in the exploration stage which owns and operates the Cross and Caribou gold and silver mine operations in Colorado and the White Caps gold mine operation in Manhattan, Nevada. The Company has reopened the fully permitted Cross Mine, which include resuming underground exploration and preliminary production activities in Colorado and surface exploration in Nevada. The Calais mining operations are fully compliant with all US and the State of Colorado permitting agencies and Mine Safety and Health Administration (MSHA) requirements.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained herein and subsequent oral statements made by and on the behalf of the Company may contain “forward-looking statements”. Such forward-looking statements may be identified by words such as “intends,” “anticipates,” “believes,” “expects,” and “hopes” and include, without limitation, statements regarding the Company's ability obtain adequate financing to repay the Brigus loan and advance development of the Cross Mine. Factors that could cause actual results to differ materially include, among others, those set forth in the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2011 and other quarterly filings with the Securities Exchange Commission (SEC) and SEDAR under the caption of “Risk Factors.” Many of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking statements, except as otherwise required by applicable securities statutes or regulations.



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