KIRKLAND LAKE, ON, May 28 /CNW/ - GLR Resources Inc. ("GLR" or the
"Company") announces that it has received a writ of summons to appear before
the Supreme Court of British Columbia in connection with its proposed sale of
its Goldfields Mine Assets to Linear Gold Corp. ("Linear") which is also named
as a defendant in the writ of summons.
The writ of summons was filed by Santa Fe Metals Corp. ("Santa Fe") and
claims against GLR for breach of contract in connection with an agreement
between GLR and Santa Fe (the "SFM Agreement") respecting the Goldfields Mine
asset. Santa Fe is seeking specific performance of the SFM Agreement, an
injunction preventing GLR from selling or encumbering the Goldfields Mine
Asset, or damages for breach of the SFM Agreement, or payment of a break fee
in the amount of $500,000 pursuant to the SFM Agreement, and its legal costs.
Santa Fe is also claiming against Linear to, among other things, have the
agreement between GLR and Linear respecting the proposed sale of the Goldfield
Mine asset declared void.
GLR believes the action is without merit and will vigorously defend it,
including its right to complete the proposed sale of the Goldfields Mine
Assets to Linear.
About GLR Resources Inc.
GLR is a Canadian-based junior mining and exploration company focusing on
projects in North America with existing projects in Ontario and Quebec. On
January 7, 2009, the TSX de-listed GLR's securities and, consequently, the
Company's securities do not trade on a recognized Canadian exchange.
For further information please see the company website at
Forward Looking Statements: This news release contains certain
forward-looking statements, such as the reference to the proposed sale of the
Goldfields Mine Assets and the statement that GLR will defend the action and
its right to complete the proposed sale of the Goldfields Mine assets to
Linear. These forward-looking statements are subject to a variety of risks and
uncertainties beyond GLR's ability to control or predict which could cause
actual events or results to differ materially from those anticipated in such
forward-looking statements. Although GLR believes that the assumptions
inherent in the forward-looking statements are reasonable, undue reliance
should not be placed on these forward-looking statements.
For further information:
For further information: Robert J. Kasner, President and Co-CEO,
Telephone: (705) 567-5351, E-mail: firstname.lastname@example.org; David J. Layman,
Senior Vice President, CFO and Co-CEO, Telephone: (705) 567-5351, E-mail: