TORONTO, Nov. 8, 2018 /CNW/ - Superior Gold Inc. ("Superior Gold" or the "Company") (TSXV: SGI) announced today that its wholly owned subsidiary, Billabong Gold Pty Ltd ("Billabong") has commenced legal proceedings against Vango Mining Limited (ASX: VAN) ("Vango") and its wholly owned subsidiary Dampier (Plutonic) Pty Ltd ("DPPL") with respect to tenements to the northeast of and separate from its 100% owned Plutonic Gold mine property located 800 kilometres northeast of Perth.
Billabong's claim arises out of an Ore Treatment Agreement ("OTA") entered into on September 23, 2014 by Northern Star Resources Ltd ("Northern Star"), Vango and DPPL, which Northern Star assigned to Billabong in October 2016.
Billabong claims it held rights of first refusal under the OTA in respect to the tenements within Vango's Plutonic Dome project in Western Australia (Tenements), and that these rights were breached with respect to certain of Vango's and DPPL's intended and actual transactions in 2016 and 2017.
Billabong is seeking remedies from the Supreme Court of Western Australia in respect to the alleged breaches.
Chris Bradbrook, President and CEO of Superior Gold stated: "It is disappointing that our efforts to resolve this dispute without litigation have been unsuccessful. Notwithstanding our claims, the infrastructure at our Plutonic Gold mine, which currently has excess mill capacity, potentially offers Vango's shareholders the opportunity to develop any financially viable mine on the Tenements in the most expedient and cost effective manner.
It is important to note that the Tenements under dispute are entirely unrelated to our 100% owned Plutonic Gold operations, which include the Plutonic underground mine and the Hermes open pit mine."
About Superior Gold
Superior Gold is a Canadian based gold producer that owns 100% of the Plutonic Gold operations located in Western Australia. The Plutonic Gold operations include the Plutonic Gold mine and central mill, the Hermes open pit gold mine and an interest in the Bryah Basin joint venture. Superior Gold is focused on expanding production at the Plutonic Gold operations and building an intermediate gold producer with superior returns for shareholders.
Forward Looking Information
This press release contains "forward-looking information" within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking information" includes statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or comparable terminology. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, and statements regarding exploration results and exploration plans.
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made. Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See "Risk Factors" in the Company's prospectus dated February 15, 2017 filed on SEDAR at www.sedar.com for a discussion of these risks.
The Company cautions that there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to forward-looking information contained in this press release to reflect events or circumstances after the date hereof.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Superior Gold
For further information: Superior Gold Inc., Brian Szeto, Vice President Communications and Strategy, [email protected], Tel: 647-925-1295