Shares Outstanding: 363 Million
Symbol & Exchange: BN-TSX
MONTREAL, Oct. 3 /CNW Telbec/ - Blue Note Mining Inc. ("Blue Note")
reports that The New Brunswick Court of Queen's Bench has granted partial
Summary Judgment in favor of Merlin Group Securities Limited, in its capacity
as Trustee of the Fern Trust regarding its claim to a 10% Net Profits Interest
(the "NPI") in and to the Caribou Mine (the "Mine"), owned by Blue Note
Caribou Mines Inc., a subsidiary of Blue Note Mining Inc (collectively, the
"Company"). The Court held that the NPI is binding upon the Mine and the
The Company initially brought the issue of the applicability of the NPI
before the Court in January, 2007, to bring certainty to the claim to the NPI
by the Fern Trust. After initially opposing having the matter summarily
decided by the Court, the Fern Trust brought a motion for Summary Judgment in
June, 2008. The Motion was heard on August 28, 2008 and the Court rendered its
decision on September 30, 2008.
The Company had sought to bring the matter expeditiously before the Court
in order to bring certainty to the Fern Trust's claim. Prior to the Company
acquiring the Mine, the Fern Trust had not provided the Company with an
executed copy of the NPI instrument nor had it demonstrated that it was the
current counter-party to the NPI. The Company questioned whether, in the
circumstances, the Company had sufficient actual notice of the NPI in order
that the NPI was binding on the Company and the Mine. To protect the Company
from the uncertainty, the Company sought direction from the Court. The Company
is consulting with counsel on whether the decision should be appealed.
The litigation continues on the issue of whether the Company, by
questioning the applicability of the NPI upon a subsequent purchaser of the
Mine, has repudiated or breached the NPI. As matters now stand, the Fern Trust
lawsuit remains in place on these issues and the Company continues to
vigorously deny the allegations.
The decision has no immediate financial impact on the Company as no
profits have been derived from the Mine to date. The calculation of the
payments under the NPI are governed by the terms of the NPI which, in
management's view, provide that no amounts are payable until all historic
costs are re-couped. In management's estimation, the historic costs include an
estimated $165,728,628.00 incurred by prior owners of the Mine. Disputes as to
amounts payable are to be arbitrated in accordance with the terms of the NPI.
Blue Note Mining is a Canadian mining company headquartered in Montreal
with operations in Bathurst, New Brunswick. The company's shares trade on the
TSX under the symbol BN.
This news release contains discussion of items that may constitute
forward-looking statements within the meaning of securities laws that involve
risks and uncertainties. Although the company believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurances that its expectations will be achieved.
Factors that could cause actual results to differ materially from expectations
include the effects of general economic conditions, actions by government
authorities, uncertainties associated with contract negotiations, additional
financing requirements, market acceptance of Blue Note's products and
competitive pressures. These factors and others are more fully discussed in
Blue Note' filings with Canadian securities regulatory authorities.
The TSX does not accept responsibility for the adequacy or accuracy of
this news release.
For further information:
For further information: Glenn Massad, Director of communications, Blue
Note Mining Inc., (800) 937-3095, firstname.lastname@example.org,