June 24, 2010: Litigation in the DRC Dismissed; El Nino Files $850,000 Counter Action
Against Georges Kavvadias and GCP Group Ltd. in Canada for Breach of
August / September 2010 - El Niño files two judgments in the DRC against George Kavvadias and
October 1, 2010: El Nino charges Georges Kavvadias and GCP Group with Fraud, Fraudulent
Misrepresentation, Misappropriation of Funds, Breach of Agreement and
Claims for USD$ 850,000 + damages in the Supreme Court of British
Columbia by El Nino.
January 5, 2011 - El Nino reports that it received notice from the Supreme Court of
British Columbia of the hearing held on November 25, 2010 regarding its
Notice of Dispute and Petition against George Kavvadias and GCP Group.
Management believes the company was successful by bringing the petition
to the Supreme Court as the court determined that these claims were to
be decided through arbitration.
April 11, 2011: Announcement that DRC court rules in favour of El Nino for two
judgments against George Kavvadias.
VANCOUVER, April 11 /CNW/ - Further to previous news releases, El Nino
reports that the Tribunal de Grande Instance in the Democratic Republic
of the Congo (DRC) has now rendered two decisions against GEORGES KAVVADIAS, ruling in favour of El Nino.
The first decision declares null and void the minutes of the meeting by
virtue of which GEORGES KAVVADIAS appointed himself as manager of the
Joint Venture Company, Infinity Resources SPRL (Infinity), (El Nino 70%
and GCP 30%) (Foneco SPRL , the original permit holder for (PR)
5214(Kasala), 5125, 5216, and 5217 which are in close proximity to
Kasala. The Kasala project is one of the first new Greenfields copper
discoveries in the last 10 years in this area of the central African
Copper belt. El Nino is the operator of the Joint Venture Company.
In the second decision, the Court removed Mr. Kavvadias as manager of
Infinity Resources and appointed an interim manager in order to call a
shareholders' meeting within two weeks of the parties being notified of the judgments in order to appoint the
new managers of Infinity.. In both cases, Georges Kavvadias was ordered to pay damages to El Nino
and all costs.
From the French translation of the first judgment, The Supreme Court of Justice went further in ruling that, "Whereas it
was thus by design and with fraudulent intent that Georges Kavvadias had these Minutes drawn up
for the purposes of claiming the capacity that he did not have by
appointing himself Manager of INFINITY RESOURCES S.P.R.L.; Whereas Georges Kavvadias availed himself of this fraudulently acquired capacity
in all instances to the detriment of El Nino Ventures Inc. by seeking to evict it while committing acts that are largely
prejudicial to INFINITY RESOURCES S.P.R.L. with the risk of causing it
to lose almost all of its property; that the minutes of the meeting of the Board of Directors appointing
Georges Kavvadias as Manager are NULL and VOID".
The following is an English translation of a partial excerpt from the
official transcript of the Court proceedings;
THE COMMERCIAL COURT OF LUBUMBASHI IN SESSION IN LUBUMBASHI AND SITTING
IN A COMMERCIAL MATTER IN FIRST INSTANCE RENDERED THE FOLLOWING
PUBLIC HEARING OF 07/03/2010
In rendering its decision for the first Judgment, the Court ruling
publicly and jointly regarding all the parties, the Government Ministry
having been heard in its conforming written opinion read by Mr. MUTOKE,
Assistant Public Prosecutor of the Republic;
In view of the Code of Judicial Organization and Jurisdiction;
In view of the Code of Civil Procedure;
In view of the Law regarding the Creation, Organization and Operation of
the Commercial Courts;
In view of Articles 258, 526 and 529 of the Congolese Code of
In view of Article 81 para. 1 of the coordinated texts on Business
Declares admissible and well founded the action brought by EL NINO
Rules in its favour;
Declares that the Special General Meeting of July 4, 2007 was held
Decrees the nullity of the minutes established the outcome of said
Condemns the Defendant Georges KAVVADIAS to pay damages and costs to El
When called on to give its opinion, the Government Ministry concluded that the Defendant GEORGES KAVVADIAS
exceeded the power conferred on him; and in the Government Ministry's opinion, he was not empowered to represent EL NINO VENTURES Inc. at the
Shareholders General Meeting. In addition the Government Ministry considered that the holding of
this Meeting was not preceded by a regular notice to the Partners and
that the Minutes of said Meeting were never filed with the Office of
the Commercial Court, the Court declared the action initiated by El Nino admissible and well
founded, and ruled in El Nino's favour and granted El Nino the full
benefit of the writ to institute proceedings.
The Court noted that GEORGES KAVVADIAS relied on the proxy entrusted to
him by Mr. J. Luc Roy (past President) to represent EL NINO at the
disputed Meeting, but that in representing EL NINO at the General
Meeting of INFINITY RESOURCES, Mr. KAVVADIAS went beyond the powers
conferred on him and that Mr. KAVVADIAS did not provide proof of the
notice to the Partners to attend the General Meeting held on July 4,
To view map please visit: http://files.newswire.ca/947/KasalaProject.docx
As previously reported (News Releases; October 1, 2010 and January 4,
2011), the Company had expected to go to arbitration sometime during
February, 2011. Following these decisions, the Company is working with
its legal counsel to finalize the appointment of the arbitrator and set
a series of dates for the steps to be taken in the conduct of the
arbitration and to pursue its claims against Georges Kavvadias and his
company GCP Group here in Canada, through the process of Arbitration.
To view Figure 1, please visit: http://files.newswire.ca/947/Figure1.docx
About El Nino Ventures Canadian Assets and Joint Venture Partners
In Canada, El Nino holds a 50% interest in an extensive base metal
project located within the Bathurst mining camp in Bathurst, New
Brunswick, where earlier drilling campaigns have been carried out on
several historical deposits of lead, zinc and copper mineralization
within the large claim block owned 50% ELN, 50% Xstrata Zinc.
El Niño subsequently entered into an option agreement with Votorantim
Metals Canada Inc. and Xstrata Zinc Canada whereby Votorantim may earn
a 50% interest in El Niño's landholdings by expending $10 million over
5 years and may further increase its interest in El Niño's landholdings
to 70% by expending an additional $10 million over a further two years.
(Please see release dated May 4, 2010,).
In February 2011, ELN announced that a $5 million exploration program
has begun consisting of airborne and ground geophysics and will include
a 10,000 metre drill program which is slated for commencement in the
spring of 2011. (See press release dated February 23, 2011).
In January 2011, ELN announced that it has provided notice Votorantim
Metals Canada Inc. (Votorantim) to enter into an Option Agreement on
the Murray Brook Polymetallic Deposit, situated in the Bathurst Mining
Camp in New Brunswick, Canada. (See press release dated January 20, 2011).. Drilling has been initiated on this project
El Nino's management is aggressively seeking to acquire additional
projects on an international scale that meet our corporate objectives.
This includes base and precious metal properties within Africa and
El Nino has approximately $2.5 million in cash with no debt.
Comments from Mr. Barr, Chairman and Acting CEO, "I would like to thank our shareholders, the directors, the financial
community, our legal counsel, management and consultants in Canada and
the DRC who have supported El Nino Ventures over the last two years,
especially because of the situation we were forced to address in the
Without their continued support and belief, El Nino Ventures would not
have been able to accomplish its objectives. I am exceptionally proud of the team that we have assembled since I
became the Chairman and acting CEO in September 2009. At the time, I was and continue to be a major shareholder of this
company. I was asked by the previous board of directors and the
President to head up El Nino (I felt obligated to do so as I had worked
with the majority of the board for over 20 years and many of the
shareholders were my long time friends/investors) when they were
experiencing difficulties with Mr. Kavvadias, who was our partner in
When I rejoined El Nino, my mandate was to refinance the company and in
extremely difficult our financial team acconplished that objective.
From there, working in conjunction with the board of directors and our
technical team, we continue to advance its projects in the DRC and
In the Fall of 2009, we then worked tirelessly with Mr. Kavvadias to get
his commitment to work with El Nino's management team and together we
were to proceed with the further development of our DRC projects. At
the end of 2009, El Nino raised sufficient working capital to stabilize
our balance sheets, and complete the geochemical program (which was
positive) and to finance the drilling which was slated for April 2011.
Previously, the Kasala project had produced exceptional drill results
which we believe demonstrated that it was the beginning of a new copper
When I committed to become the Chairman and acting CEO, a court action
was already underway. After several rounds of talks and negotiations,
Mr. Kavvadias gave me a verbal commitment and shook my hand and we
agreed that the past was the past and that we would put our differences
behind us and together we would work to develop our DRC projects.
Subsequently, due to a court action initiated by Mr. Kavvadias in the
DRC, I personally visited two African countries to do my best efforts
convince him that his actions were unfounded and unfair to our
shareholders who had commited millions of dollars to the DRC which lead
to the Kasala Copper discovery and to once again get Mr. Kavvadias to
recommit to our cause and work with El Nino's management to proceed
with the further development of our projects. Our negotiations and
efforts were unsuccessful.
Unfortunately, I had to advise the board that we would have no choice
but to defend our rights and take counter actions to protect our assets
on behalf of the shareholders of El Nino due to Mr. Kavvadias'
continued unreasonable and unrealistic demands. I personally never
intended to get this involved in an unproductive, prolonged series of
court actions which have caused our shareholders and management undue
hardship but looking back I do not see how we had any choice..
Then as now, I believe in the Democratic Republic of Congo and its vast
mineral wealth, more specifically, that with continued support from the
government and its citizens, foreign companies like El Nino, will
continue to invest in their country.
El Nino's objective is to utilize the people of the DRC's expertise, and
blend that expertise with our technical and financial ability to
develop of our existing projects.
Going forward, our mandate is to acquire new projects and ultimately to
create additional jobs, further educate the local communities that are
projects are located in and be environmentally responsible and
respectful of country. I believe the accomplishment of this corporate
vision will also help grow the DRC's economy.
The companies I have been associated with, including the International Metals Group, have completed over 30 option/joint venture agreements with major
mining companies, approximately 15 with mid-tier companies and over 200
with junior mining companies on an International scale. Combining our
joint ventures with the equity we collectively raised approximately
$500 million to complete our objectives to date.
I am very proud to say that during my tenure as Chairman and acting CEO
with El Nino Ventures, our legal, technical, financial and
administrative team have both achieved and exceeded its objectives.
Despite management's continued efforts, we cannot guarantee that the
final result will be in our favour. However, we will persevere and
based on the achievements which we have purposely and painfully
overstated in this release, we believe we will accomplish our
Our technical team is currently finalizing exploration plans to continue
the development of our DRC projects and those announcements will be
On behalf of the shareholders and board of directors of El Nino
Ventures, I would like thank you for your ongoing support.
Harry Barr, Chairman and Acting CEO
The TSX Venture Exchange or 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.
Note: this release contains forward-looking statements that involve
risks and uncertainties. These statements may differ materially from
actual future events or results and are based on current expectations
or beliefs. For this purpose, statements of historical fact may be
deemed to be forward-looking statements. In addition, forward-looking
statements include statements in which the Company uses words such as
"continue", "efforts", "expect", "believe", "anticipate", "confident",
"intend", "strategy", "plan", "will", "estimate", "project", "goal",
"target", "prospects", "optimistic" or similar expressions. These
statements by their nature involve risks and uncertainties, and actual
results may differ materially depending on a variety of important
factors, including, among others, the Company's ability and
continuation of efforts to timely and completely make available
adequate current public information, additional or different regulatory
and legal requirements and restrictions that may be imposed, and other
factors as may be discussed in the documents filed by the Company on
SEDAR (www.sedar.com), including the most recent reports that identify
important risk factors that could cause actual results to differ from
those contained in the forward-looking statements. The Company does
not undertake any obligation to review or confirm analysts'
expectations or estimates or to release publicly any revisions to any
forward-looking statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
Investors should not place undue reliance on forward-looking statements
For further information:
Corporate: Jay Oness - firstname.lastname@example.org
Investor Relations: Toll free 1.800.667.1870
2303 West 41st Avenue, Vancouve, B.C. V6M 2A3