Trading Symbol: TSX-V: IG
CALGARY, Jan. 18 /CNW/ - Infinito Gold Ltd. (the "Company") announces
that on Tuesday, January 18, 2011, its wholly owned subsidiary in Costa
Rica, Industrias Infinito S.A., ("IISA") filed a request for annulment
("Casación") with the Administrative Law Chamber of the Supreme Court
of Costa Rica, ("SALA I") against the sentence imposed by the Tribunal
Contencioso Administrativo ("TCA") on November 24, 2010, (the
"Ruling"). In addition, several government agencies involved in the
Crucitas project approval process have filed for Casación along with
several individuals directly impacted by the Ruling.
The filing of the Casación seeks to overturn the Ruling which annulled
the Exploitation Concession of the Company's Crucitas gold project. In
addition, the Ruling invalidated the original approval of the
environmental impact study received in December of 2005 during the Abel
Pacheco presidency, the amended environmental impact study received in
February of 2008, and the Presidential Decree declaring the project to
be in the national interest received in October of 2008.
The Ruling also recommended that the office of the Attorney General
investigate possible criminal action against former President Arias,
former environment minister Dobles, several government officials, a
former employee and a former consultant of the Company. The Company
strongly denies any allegation of wrongdoing throughout the project
approval process in Costa Rica and will consider all legal options, in
addition to the filing of the Casación, in defending itself and the
interests of its investors and employees.
In the Casación the Company is seeking to overturn the Ruling rendered
only two days following the completion of the TCA hearing in November.
The Company is also arguing that most of the matters addressed by the
Ruling were already evaluated in considerable detail by the
Constitutional Chamber of the Supreme Court ("SALA IV"). The SALA IV
ruling was received in April of 2010, following an exhaustive process
which took more than 18 months and included a site visit by the SALA IV
judges and an oral presentation and questioning process called a Vista
which lasted over three days. The full written ruling of the SALA IV
was received in July of 2010 and at 340 pages is considered one of the
most detailed and extensive decisions in the history of the SALA IV.
The SALA IV decision ruled that the challenges to the grant of permits
allowing development of the Company's Crucitas gold project were
effectively without merit. The SALA IV also ruled that, following the
establishment of a monitoring committee (or "Comima"), the project
could proceed with Comima approval, a process that was well underway
prior to the dissemination of the Ruling.
The Company is seeking to re-establish the security and value of its
considerable and long term investments in Costa Rica and to reverse the
negative impact that the Ruling has had with respect to the Company's
share price and the inherent negative impact on its investors and
The apparent situation where a lower court ignores or discounts the
ruling of a higher court, in this case the SALA IV, also has
implications for the broader business and legal community in Costa Rica
with respect to judicial and investment security for both the Company
as well as current and potential investors in the country.
While the Company has made the decision to file for Casación, as stated
previously, the Company will continue to evaluate all legal options to
defend itself as well as the interests of its investors and employees
during the SALA I judicial process.
Caution Regarding Forward-Looking Information and Statements
Certain statements in this press release address future events and
conditions and, as such, involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the statements.
These factors include, among others, whether the negative impacts of
the Ruling on the Company can be reversed by the Casación, that the
Casación may be unsuccessful or that other legal options may be
unavailable or unsuccessful at restoring the Company's rights or value.
These statements are made as of the date of this release but the
Company undertakes no obligation to update these statements or any
related forward-looking information if circumstances or management's
estimates or opinions should change. The reader is cautioned not to
place undue reliance on forward-looking information or statements.
INFINITO GOLD LTD.
President and CEO
" 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 and accuracy of this release."
SOURCE Infinito Gold Ltd.
For further information:
INFINITO GOLD LTD.
600, 1100 1stStreet S.E.
Calgary, Alberta T2G 1B1
Telephone: (403) 444-5191