VANCOUVER, June 24 /CNW/ - El Nino Ventures Inc. ("ELN", "El Nino" or the "Company") (TSX.V: ELN; FSE: E7Q) announced today that it has received notice that the previously announced claims commenced in the Democratic Republic of the Congo, (DRC) were dismissed by the Tribunal of Commerce of Lubumbashi. El Nino successfully argued that the jurisdiction for hearing the claims is in British Columbia and not the DRC. As well, the orders for garnishment of the Company's shares in its joint venture Company, Infinity Resources SPRL, have been removed and remain registered in the Company's name contrary to the representations of Georges Kavvadias and GCP Group Ltd. The Company continues to take the position that the actions of its previous Country Manager, Georges Kavvadias are both spurious and without merit.
El Nino has also served Mr. Kavvadias and GCP Group Ltd. a Notice of Dispute and petitioned the Supreme Court of British Columbia in response to two alleged defaults of the Joint Venture Agreement.
The Company has stated in its Notice of Dispute and is prepared to prove that:
- The amounts claimed are not due and owing and that Mr. Kavvadias and
GCP Group Ltd., despite repeated requests are unable to provide an
accounting of the funds entrusted with him for the advancement of
exploration works in the DRC.
- GCP Group Ltd. is in breach of the Representations and Warranty
contained in the Agreements.
- A claim of USD $850,349, for the right to set-off, as against any
sums which may be due and owing to Georges Kavvadias and GCP Group
Ltd., as well as unspecified damages for breach of the agreements by
Georges Kavvadias and GCP Group Ltd. and for further damages for
fraud and fraudulent misrepresentation by Georges Kavvadias and
GCP Group Ltd.
In addition to the above, the Company is claiming that Georges Kavvadias breached the Joint Venture Agreement, in addition to the breach of warranty, by purloining funds provided to him, by denying the Company access to financial information and the Company's leased premises, equipment and property in the DRC and refusing to follow the budgetary decisions of El Nino.
It is important for the Company to obtain a resolution of the disputes and to determine the above quickly, so that the Management can begin addressing its obligations and renewing its efforts to advance the Company's exploration projects in the DRC.
Following receipt from GCP Group Ltd. of the Notices of Default relating to the Joint Venture Agreement, El Nino has invoked the arbitration clauses contained in the agreements. Whereas in the past, GCP Group Ltd. has commenced litigation both in British Columbia which has been resolved and in the DRC which has been dismissed, with respect to past disputes, the Company's purpose for invoking the arbitration clause is to obtain a quick resolution of the current disputes.
On behalf of the Board,
Director, Chairman, Acting CEO
El Nino Ventures Inc.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Note: this release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results and are based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. In addition, forward-looking statements include statements in which the Company uses words such as "continue", "efforts", "expect", "believe", "anticipate", "confident", "intend", "strategy", "plan", "will", "estimate", "project", "goal", "target", "prospects", "optimistic" or similar expressions. These statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the Company's ability and continuation of efforts to timely and completely make available adequate current public information, additional or different regulatory and legal requirements and restrictions that may be imposed, and other factors as may be discussed in the documents filed by the Company on SEDAR (www.sedar.com), including the most recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company does not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors should not place undue reliance on forward-looking statements.
SOURCE El Nino Ventures Inc.
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