Trading Symbol: TSX-V: IG
CALGARY, April 18 /CNW/ - Infinito Gold Ltd. (the "Company") announces that on Friday, April 16, 2010, the Constitutional Chamber of the Supreme Court in Costa Rica ("SALA IV") ruled that the challenges to the grant of permits allowing development of the Company's Crucitas gold project are without merit, ending the suspension of development activity at the project imposed by the SALA IV.
This ruling by the SALA IV, in Vote No 6922, disposes of all challenges raised by a number of citizens alleging that certain official approvals and permits received by the Company's wholly owned subsidiary in Costa Rica, Industrias Infinito SA, were not issued in compliance with applicable laws and regulations. The Vote states, by a margin of five votes to two, that the legal challenges were without merit with one specific exception that was considered to have been cured by the date of the Vote. This supports the earlier ruling by the SALA IV, received in November 2009, stating that it was not contrary to the Constitution for the President and the Minister of Environment of Costa Rica to issue the Presidential Decree in October 2008 declaring the Crucitas project to be in the national interest.
President and CEO, John Morgan, stated: "The Company takes very seriously its environmental and social responsibilities in the development of this project, and has always believed that the many years spent developing its research, preparation, practices and management plan for environmental and social responsibilities would be viewed as world class and best practice. The very detailed review by Costa Rican Constitutional Court over a period of 16 months including a site visit and a public hearing by the Magistrates has vindicated that commitment by the Company."
Chairman, Steven Dean, stated: "Costa Rica has a world renowned reputation as an environmentally responsible country and the Company is committed to managing the project with principles consistent with that high standard. It is the Company's objective to make the Crucitas project a model for sustainable and responsible development of mining projects, not only in Central America, but the world."
The Vote received on Friday, April 16, 2010 is the basic or summary decision reached by the SALA IV. The complete, detailed decision will be made available by the SALA IV in the near future. Although the detailed decision will have to be reviewed carefully, the Company's legal advisors do not anticipate any further delay in the resumption of construction activities, or undue restraints on the Company's construction or operating procedures.
On Saturday April 17, 2010 the Company became aware that a group opposed to the project had filed an injunction, based on an earlier filing, with the Tribunal Contencioso Administrativo and was awarded a period of three business days for the parties to present written arguments to the Tribunal. During this period no work can be done in the mining or tailings area at the site. The Company will file arguments with the Tribunal Contencioso to lift the injunction. Legal counsel in Costa Rica has advised that the filing has no merit for several reasons including the fact that the SALA IV has already ruled on the items that have been put forward to the Tribunal Contencioso. In Costa Rica there is a legal principle in effect called "Cosa Juzgada" that once the Supreme Court has ruled on a case that no lower courts will rule again on same matters. The Company anticipates that this will have no impact on development at the site.
The Company was well advanced with construction activity at the mine site when activity was suspended in October of 2008. Since that date, the Company has continued to receive components required for the processing plant such as screens, pumps, agitators and the main project electrical transformers. The mill pedestals are in place and the SAG and ball mill are ready to be mounted when construction recommences.
The Company will continue working with BNP Paribas, which has been providing structuring advice as lead arranger for the financing of the Crucitas project, with the objective of securing project financing as soon as possible.
Caution Regarding Forward-Looking Information and Statements
Certain statements in this press release address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. These factors include, among others, the timing related to the dissemination of the complete, detailed SALA IV decision and the nature of any conditions contained therein, the impact of the recent injunction on development at the site, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the possibility that all necessary governmental and regulatory approvals will not be received, and the availability of a qualified workforce and third party contractors necessary for the development and operation of a mine. These statements are made as of the date of this release but Company undertakes no obligation to update these forward-looking information or statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking information or statements.
INFINITO GOLD LTD.
President and CEO
"The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release."
SOURCE Infinito Gold Ltd.
For further information: For further information: INFINITO GOLD LTD., 216, 102 - 8th Avenue S.W., Calgary, Alberta, T2P 1B3, Telephone: (403) 444-5191