Appointment of New President for Mt. Labo and Commencement of Arbitration
Subiaco, Western Australia (FSCwire) - The Board of RTG Mining Inc. (“RTG”, “the Company”) (TSX Code: RTG, ASX Code: RTG) is pleased to announce the appointment by Mt. Labo Exploration and Development Corporation (“Mt. Labo”) of a new President, Mr. Eduardo U. Escueta. Mr. Escueta is a well-respected and experienced businessman and lawyer in the Philippines. He was previously a partner of Angara Abello Concepcion Regala and Cruz (ACCRA Law), one of the top law firms in the Philippines and was the Vice-Chairman and Executive Officer of the National Police Commission for eight (8) years (2008-2016). With his credentials, Mr. Escueta is well-equipped to manage the varied interests of Mt. Labo in the Mabilo Project.
RTG as a shareholder in Mt. Labo, welcomes the appointment of Mr. Escueta as President of Mt. Labo and wishes him well in his future endeavours with the company.
Having now provided Galeo Equipment Corporation (“Galeo”) with an extended period of time to cure its numerous breaches of both the compromise agreement reached in June last year and the Joint Venture Agreement between Mt. Labo and Galeo (in respect of the Mabilo Project) (“JVA”), Mt. Labo has had no option but to terminate the JVA in accordance with its terms because Galeo failed to cure its breaches.
Mt. Labo has now also commenced arbitration proceedings against Galeo in the Singapore International Arbitration Centre in accordance with the provisions of the JVA and the compromise agreement. In those arbitration proceedings, Mt. Labo seeks a number of reliefs, including a declaration that the JVA was validly terminated and the compromise agreement was validly rescinded. Under the JVA, on termination the innocent party is then given the right to buy out the guilty party at a 10% discount to book value, which for the joint venture is nominal given it was still in the exploration phase of the project.
As we have stated previously, Mt. Labo had hoped to avoid commencing proceedings, but the actions of Galeo to date have left the company with no other option to protect its interests.
ABOUT RTG MINING INC
RTG Mining Inc. is a mining and exploration company listed on the main board of the Toronto Stock Exchange and Australian Securities Exchange. RTG is focused on developing the high grade copper/gold/magnetite Mabilo Project and advancing exploration on the highly prospective Bunawan Project, both in the Philippines, while also identifying major new projects which will allow the Company to move quickly and safely to production.
RTG has an experienced management team (previously responsible for the development of the Masbate Gold Mine in the Philippines through CGA Mining Ltd.), and has B2Gold as one of its major shareholders in the Company. B2Gold is a member of both the S&P/TSX Global Gold and Global Mining Indices.
ENQUIRIES
| Australian Contact | US Contact |
| President & CEO – Justine Magee | Investor Relations – Jaime Wells |
| Tel: +61 8 6489 2900 | +1 970 640 0611 |
| Fax: +61 8 6489 2920 | |
| Email: jmagee@rtgmining.com | jwells@rtgmining.com |
| Website – www.rtgmining.com |
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This announcement includes certain “forward-looking statements” within the meaning of Canadian and applicable securities legislation. Statements regarding interpretation of exploration results, plans for further exploration and accuracy of mineral resource and mineral reserve estimates and related assumptions and inherent operating risks, are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from RTG’s expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies in the development of RTG’s mineral projects; the need to obtain additional financing to develop RTG’s mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for RTG’s mineral projects and other risks and uncertainties disclosed under the heading “Risk Factors” in RTG’s Annual Information Form for the year ended 31 December 2016 filed with the Canadian securities regulatory authorities on the SEDAR website at sedar.com. The forward €looking statements made in this announcement relate only to events as of the date on which the statements are made. RTG will not release publicly any revisions or updates to these forward €looking statements to reflect events, circumstances or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/RTG05172017.pdf
Source: RTG Mining Inc. (TSX:RTG)
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