Shares Outstanding: 363 Million
Symbol & Exchange: BN-TSX
MONTREAL, Feb. 25 /CNW Telbec/ - Blue Note Mining Inc. reports that the
New Brunswick Court of Appeal has upheld the decision of the New Brunswick
Court of Queen's Bench granting partial Summary Judgement in favour of Diorite
Securities Limited, in its capacity as Trustee of the Fern Trust (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
upheld the decision that the NPI is binding upon the Mine and the Company.
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. 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 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.
Further, management is consulting with counsel regarding whether the NPI
ceases to have any force or effect in light of the CCAA filing of Blue Note
Caribou Mines Inc on February 20, 2009. In accordance with its terms, the NPI
was to expire should the predecessor grantor became subject to the CCAA. As
the Courts have ruled that the Company has succeeded to the position of the
prior grantor, the Company is investigating whether the NPI has any further
force of effect.
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 and mineral exploration company
headquartered in Montreal with base metal and gold exploration properties in
Bathurst, New Brunswick. The company's shares trade on the TSX under the
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 the Company's products and
competitive pressures. These factors and others are more fully discussed in
Company 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: Lorne Woods, Vice President, Investor
Relations, Blue Note Mining, (800) 937-3095, email@example.com;