Devonshire Resources Ltd (Previously Ripple Lake Diamonds) Launches Legal Proceedings in BC Supreme Court



    TRADING SYMBOL: TSX-V: DSH, OTCBB: DSHRF

    VANCOUVER, Oct. 11 /CNW/ - In May of 2004, the Company (then known as
"TCH Minerals Inc.") entered into an Option Agreement with KM Diamond
Exploration Ltd. ("KM Diamond") pursuant to which the Company was granted an
option to acquire a 100% interest in 15 claims (the "Properties") known as the
"Brown Lake Property", and sometimes also referred to as the "KMD Project", in
Nunavut, approximately 100 km northwest of Rankin Inlet. Felix Kaminsky
("Kaminsky"), the principal of KM Diamond, acted as the Company's Manager of
Exploration and as a consultant to the Company over the period from
approximately June 2004 through approximately late December 2006.
    In November 2006, KM Diamond gave notice of default to the company with
respect to the Option Agreement, alleging that the Company had failed to carry
out required work programs on the Properties. The Company denied the alleged
default. The company gave notice to KM Diamond on or about December 11, 2006
that it was exercising its option and acquiring 100% of the Properties,
subject to a royalty in favour of KM Diamond equal to 3% of gross revenue
received from the sale of diamonds from the Properties as stipulated in the
Option Agreement. At that time, the Company forwarded 400,000 shares of the
Company to KM Diamond, which the Company considers constituted full payment to
KM Diamond for the right to exercise the option for 100% of the Properties
(taken in conjunction with other, previous payments). However, KM Diamond
returned these shares, and asserted that the exercise of the option by the
Company was invalid. KM Diamond has not transferred the Properties to the
Company and has taken the position that the Option Agreement has terminated
without proper exercise by the Company. The Company disagrees with that
position.
    Today the Company launched proceedings in BC Supreme Court seeking an
order of specific performance, to require KM Diamond and Kaminsky to transfer
the Properties to the Company, along with certain contiguous properties, as
well as for damages, costs, and other relief.

    ON BEHALF OF DEVONSHIRE RE

SOURCES LTD. "Tim Crowhurst" Tim Crowhurst President and Director Tel: 604.696.6672 www.devonshireresources.com The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements. %SEDAR: 00021121E %CIK: 0001321847

For further information:

For further information: Tim Crowhurst, President and Director, Tel:
(604) 696-6672, www.devonshireresources.com

Organization Profile

RIPPLE LAKE DIAMONDS INC.

More on this organization

DEVONSHIRE RESOURCES LTD.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890