Scorpio Gold Announces Settlement of Court Proceedings Relating to a Subsidiary
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 14, 2017) - Scorpio Gold Corp. ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) announces it has reached a settlement with National EWP, Inc. ("National") to end the court proceedings involving its 70% indirectly owned subsidiary Mineral Ridge LLC ("MRG"), the operator of the Company's Mineral Ridge gold operation.
In its prior ruling, the Second Judicial District Court of Washoe County, Nevada issued a judgment awarding National US$2.3 million in its lawsuit against MRG. The Company and its legal advisors disagreed with both the Court's legal conclusions and its factual findings and began the appeals process. To prevent any collection activities during the pendency of the appeal, MRG was required to provide cash security to the court in the amount of the judgment. During the early stages of the appeal, Nevada court rules required both parties to attend a settlement conference with a court-appointed mediator to seek agreeable settlement terms. After negotiation with National, the Company determined that it was in its best interest to settle the case for an amount of US$1 million and end the costly litigation.
This settlement allows Scorpio Gold to avoid significant legal fees during a potentially lengthy appeals process and provides for return of $1.3 million of the $2.3 million cash security posted with the court. MRG can thereafter use the freed up funds to further advance its Nevada properties.
About Scorpio Gold
Scorpio Gold holds a 70% interest in the Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Elevon, LLC (30%). Mineral Ridge is currently in production as a conventional open pit mining and heap leach operation. The Mineral Ridge property is host to multiple gold-bearing structures, veins and lenses at exploration, development and production stages. Scorpio Gold also holds a 100% interest in the advanced exploration-stage Goldwedge property in Manhattan, Nevada, with a fully permitted underground mine and 400 ton per day mill facility. The Goldwedge mill facility has been placed on a care and maintenance basis and can be restarted immediately when needed.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Brian Lock, Interim CEO
Neither 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.
The Company relies on litigation protection for forward-looking statements. This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements, including the outcome of the litigation and those risk factors outlined in the Company's Management Discussion and Analysis as filed on SEDAR. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty thereof.
Contact
Scorpio Gold Corp.
Chris Zerga
President
(819) 825-7618
czerga@scorpiogold.com
www.scorpiogold.com
Investor Relations
JNS Capital Corp.
Jag Sandhu
778-218-9638
JAGJNS@outlook.com