VANCOUVER, July 25, 2012 /CNW/ - Mining publication Business News Americas reported on August 12, 2004: "Representatives from the governments of Argentina and Chile will meet
in Santiago to sign the mining integration treaty protocol for the
Pascua Lama bi-national project, Argentina's mining secretary reported.
The protocol will provide the legal framework to begin the gold and silver project, whose construction will require some US$1bn. The document will be
signed by Argentina's foreign affairs minister Rafael Bielsa and his
Chilean counterpart, Soledad Alvear, together with Argentina's mining
secretary Jorge Mayoral. Also present at the ceremony will be
provincial authorities, legislators, and Argentine and Chilean
businessmen, among others. The Pascua Lama project is owned by Canada's
Barrick Gold (NYSE: ABX), which has already greenlighted development of
the project on the Chile and Argentina border. The project will have a
three-year construction period and will begin operations within 18
months once tax and financing issues are settled, the company said in
Mountainstar Gold Inc., the Company, formerly known as Mountain-West
Resources Inc., is currently funding a legal challenge to the bona fides of the Pascua Protocol in Chile and seeks, among other things, a Court
Order that the Pascua Protocol be extinguished. Without the Pascua
Protocol, the Pascua Lama project, as currently proposed by Barrick
Gold Corp. and its subsidiaries (referred to herein together, or
variously, as "Barrick"), in the opinion of Management, cannot possibly
proceed. The basis for this Court challenge is that the Pascua
Protocol was erroneously obtained upon fatally-flawed representations
and assertions by Barrick, which errors are detailed as follows:
Amarillos 1-3000, a mining concession obtained by Barrick from Lac
Minerals in 1994 and included in the Pascua Protocol, is a non-metallic (salts and nitrates only) concession according to Sernatgeomin (Chile's
Geological Authority) and as such, cannot rationally support a gold and silver project.
Amarillos 1-3000 is in the process of Mining Registry cancellation in
the Courts at Vallenar, Chile, owing to a long-outstanding
super-positioning flaw (per the Chilean Mining Code).
Barrick, which claims to own Tesoros Uno 1 - 30 to Tesoros Doce 1 - 5
concessions ("Tesoros") and which concessions are also included in the
Pascua Protocol, has admitted to the Court at Vallenar, Chile that it
does not possess any documents of ownership of Tesoros, nor does it
possess any valid legal rights in Chile to allow the exploitation of
the Tesoros concessions. Accordingly, in the opinion of Management,
Barrick must cease claims of ownership or legal control over the
Tesoros claims or, potentially face serious consequences in Chile,
where such transgressions are taken very seriously by the Courts.
The Tesoros concessions have been subject to a Court-Ordered Injunction
since 2001 which prohibits, among other things, contracting with,
encumbering or otherwise commercially exploiting the Tesoros
concessions pending the outcome of a Court action in Santiago, Chile
(case No. C-1912-2001). In the opinion of Management, the Tesoros
concessions, having also been included in "Barrick's" Pascua Protocol,
should never have been claimed to have been owned by Barrick, as these
concessions have never been legally owned or controlled by Barrick, in
accordance with Chilean law.
MSX's joint venture partner, Mr. Jorge Lopehandia, owns unencumbered
title (certified domain) to the Amarillo Norte and Amarillo Sur
concessions ("Restituted Amarillo"), over the Mina Pascua Chile areas
of geological interest. These concessions are positioned super-imposed
over the Tesoros areas, which Barrick's own lawyer Gonzalo Nieto
identified, in 2010 Court proceedings in the 14th Civil Court of
Santiago, Chile (case no. C-1912-2001"), as possessing the greatest
geological interest for the Pascua Lama project.
These Restituted Amarillo concessions are described in the Option
Agreement between the Company and Mr. Lopehandia.
On behalf of the Board of Directors,
President & CEO
Some of the statements contained in this release are forward-looking
statements, such as MSX' s expectation that it the Amarillos 1-3000
claims are in the process of cancellation. Actual results and
developments may differ materially from those contemplated by such
forward-looking statements. There can be no assurance that
forward-looking statements will prove to be accurate. Accordingly,
readers should not place undue reliance on any forward-looking
Neither the Canadian National Stock Exchange nor the Investment Industry
Regulatory Organization of Canada (IIROC) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE: Mountainstar Gold Inc.
For further information:
Bruce Olivier, Director: Telephone: 1-403-380-3255,