VANCOUVER, British Columbia, Feb. 14, 2011 /CNW/ -- Canoro Resources Ltd. (the "Company") (TSXV: CNS) announces that it has commenced a legal action against Les Kondratoff, its former President and Chief Executive Officer, and Assam Company India Limited ("Assam") (BSE: ASSAMCO), its minority partner in the Amguri Project. The Company further announces that it has filed a notice of arbitration under the joint operating agreement (the "Amguri JOA") underlying the Amguri Project respecting Assam's failure to pay its share of costs and expenses in relation to the Amguri Project.
The Company has filed a statement of claim against Les Kondratoff in the Alberta Court of Queen's Bench for, among other things, breaches of his fiduciary duties, misuse of confidential and proprietary information of the Company and duty not to misappropriate corporate opportunities and goodwill arising from his actions following his termination from the Company and his current employment with Assam as its Chief Operating Officer. The Company claims that as a result of his prior position with the Company, Mr. Kondratoff was in the possession of confidential information respecting the Company's projects, which information he is using to his personal benefit and to that of Assam through his current employment with Assam and is thereby in direct breach of his many duties owed to the Company. In addition, while employed by Assam, Mr. Kondratoff has engaged in threatening behaviour against the Company's personnel.
The Company has also claimed against Assam in the action on the basis that it has engaged Mr. Kondratoff, with knowledge of his duties to the Company, to carry on business in direct competition with the Company, including the use of confidential information, obtained as a result of Mr. Kondratoff's former position with the Company, to aid the expropriation of the Company's Amguri project and its ongoing projects in Nagaland.
The Company has also filed a notice of arbitration under the Amguri JOA as a result of Assam's failure to meet its obligation under the JOA to make contributions for the costs and expenses incurred by the Company as operator of the project. To date, Assam has failed to meet cash calls of approximately US$4.0 million.
The Company has invested over $90 million in its Indian oil and gas projects and believes in the long term potential of the same. The Company believes that Assam is orchestrating the previously announced attempt by the Ministry of Petroleum and Natural Gas of the Government of India to cancel its Amguri production sharing contract so that, upon such cancellation, Assam could acquire the Amguri Project and realize a significant windfall at the expense of the Company and its shareholders. The Company believes that the engagement of Mr. Kondratoff in breach of his duties to the Company and the continued failure to meet cash calls are further attempts to deliberately undermine the Company's ability to develop its Indian projects. As such, the Company intends to vigorously prosecute its claims and take all such further available actions to protect its interests in its projects.
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SOURCE Canoro Resources Ltd.
For further information: Rene Randall, +1-604-408-8538, firstname.lastname@example.org, for Canoro Resources Ltd. Web Site: http://www.canoro.com