VANCOUVER, Feb. 4, 2013 /CNW/ - Eco Oro Minerals Corp. ("Eco Oro" or the "Company") (TSX: EOM) reports that the Company has been served with notice of legal
proceedings in the Eighth Civil Circuit Court of the City of
Bucaramanga filed by Sociedad Mina Los Diamantes Ltda. and Crisanto
Peña Gelvez (the "Claimants"), which proceedings the Company believes
to be spurious and entirely without merit. The Claimants are seeking
the annulment of an assignment and sale agreement (the "Agreement")
entered into in 1994 by the Claimants and the Company pursuant to which
the Company acquired mining permit 3452 (the "Permit") from the
Claimants, who retained net profits royalties.
The Permit, covering an area of 250 hectares, was converted into
integrated concession contract 3452 (the "Concession"), covering an
area of 5,254 hectares, with the Colombian Government and registered in
the National Mining Register in 2007. A significant portion of the
Angostura deposit, however, is covered by the original area of the
Permit. The Concession, which incorporated the Permit and several other
mineral tenures, is fully registered in the name of the Company.
After reviewing the Claimants' allegations with its legal advisors, the
Company believes the claims to be without merit and will vigorously
contest them. Eco Oro will file its defense in due course and will
initiate a claim for damages and for costs against the Claimants. The
Claimants allege that not all formalities were observed at the time the
Agreement was entered into and that the Agreement should be annulled on
that basis. The Company is of the view that no deficiencies existed and
had they existed would have been ratified by the conduct of the parties
and the Colombian Government, including by the Colombian Ministry of
Mines by perfecting the assignment of the Permit in 1996 by
administrative act, and that, in any event, the statute of limitations
can be invoked to reject the claims. Furthermore, the Agreement
requires any dispute raised by the Claimants to be settled by way of
arbitration and not the courts.
These legal proceedings will not have any impact on the Company's
Eco Oro Minerals Corp. is a publicly-traded precious metals exploration
and development company with a portfolio of projects in Colombia. Eco
Oro has been focused on its wholly-owned, multi-million ounce Angostura
gold-silver deposit, located in northeastern Colombia, for over 15
years during which it has invested over $200 million in the project's
development and in that of the surrounding communities. Eco Oro is
committed to further advancing the Angostura Underground Project in a
socially and environmentally responsible manner that will be beneficial
for all stakeholders.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
Certain statements in this news release are "forward-looking" within the
meaning of Canadian securities legislation. They include statements
about outcomes and actions to be taken relating to legal proceedings.
Forward-looking statements are necessarily based upon the current
belief, opinions and expectations of management that, while considered
reasonable by the Company, are inherently subject to significant
business, economic, competitive, political and social uncertainties and
other contingencies. Many factors could cause the Company's actual
results to differ materially from those expressed or implied in the
forward-looking statements. These factors include, among others,
political influence, government regulation as well as other risk
factors set out under the heading "Risk Factors" in the Annual
Information Form dated March 26, 2012, which is available on SEDAR at www.sedar.com. Investors are cautioned not to put undue reliance on forward-looking
statements due to the inherent uncertainty therein.
SOURCE: Eco Oro Minerals Corp.
For further information:
For more information please visit the Company's website at www.eco-oro.com or contact
President & CEO
Tel: +1 604 682 8212
Fiona Grant Leydier
Director, Investor Relations
Tel: +1 604 682 8212