VANCOUVER, Aug. 3, 2012 /CNW/ - The Company (MIDASCO CAPITAL CORP. - TSX-V Symbol MGC) has received notice from the Titleholder of the 7 licenses under the Option Agreement dated April 11, 2011 that he has unilaterally terminated the agreement due to non-payment of certain monies under the payment schedule.
The Company has paid as per the Agreement signed between the Government of Bolivar and the Titleholder all Canon arrears and made all regulatory filings (PTO's, EIA's and Insurance documents) to bring a number of the licenses current and available for transfer to the Company under the Agreement. The Company made a decision not to make a payment to the Titleholder as the Titleholder failed to cooperate with facilitating the transfer of titles and the Secretary of Mines Bolivar refused to transfer the licenses even though the Company paid the surface Canon funds directly to them and submitted Irrevocable Power of Attorney from the Titleholders to transfer the titles.
The Company through its Colombian law firm Alianza W.J. Ltd has notified the Titleholder that the Company will seek Arbitration under Clause 13 of the Agreement and seek an order instructing the Secretary of Mines, Bolivar to affect the transfer of titles.
We seek safe harbour.
"Neither 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.
SOURCE: Midasco Capital Corp.
For further information:
Dustin Elford, President (604) 669-2901