RAYMOND, AB, Dec. 2 /CNW/ - American Creek Resources Ltd. ("American Creek") announces that it has commenced legal action against Teuton Resources Corp. ("Teuton") for breach of contract. The option agreement between American Creek and Teuton dated April 4, 2007 (the "Option Agreement") provides that American Creek earns a 51% interest in the Treaty Creek Property (the "Property") by issuing 100,000 commons shares to Teuton and by making exploration expenditures aggregating $5,000,000 on or before March 31, 2010 (the "First Earn-in"). The agreement between the parties dated September 11, 2007, which confirms and amends the Option Agreement, requires Teuton to "forthwith transfer legal title in and to the Property" upon completion of the First Earn-in. American Creek has completed the First Earn-in, but Teuton has not transferred title. In the legal action, commenced in the Supreme Court of British Columbia on December 2, 2010, American Creek claims that Teuton is, therefore, in breach of the agreements, and seeks an order transferring legal title to American Creek.
On September 10, 2009, a full six months prior to the required date, American Creek notified Teuton that it had met all requirements to complete the First Earn-in and requested that Teuton transfer title to American Creek. Although Teuton has not transferred title, it has acknowledged that American Creek has earned the interest. For example:
Teuton's September 22, 2009 press release states: "Teuton...is pleased to announce that American Creek Resources ("AMK") has served notice on the Company that it has spent enough money on the Treaty Creek property to earn in to a 51% interest."
Teuton's November 30, 2009 press release states: "American Creek holds a 51% interest in the Treaty Creek Project with Teuton holding the remaining 49%."
Teuton's January 13, 2010 press release states: "American Creek holds a 51% interest in the Treaty Creek Project with Teuton holding the remaining 49%."
By March 31, 2010 American Creek had expended $6,510,670, which is $1,510,670 more than was required under the Option Agreement.
Recent developments in the immediate area of the Treaty Creek project underscore the potential of the Property, and the Board determined that this legal action was a necessary step to enable the project to move forward.
American Creek will provide a link on its website giving access to relevant documents relating to this law suit.
American Creek Resources Ltd. is a Canadian mineral exploration company focused on the acquisition, exploration and development of mineral deposits within the Province of British Columbia, Canada.
Information relating to the Corporation is available on its website at www.americancreek.com.
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