TORONTO, July 29 /CNW/ - Win-Eldrich Mines Limited (TSXV - WEX), today
provided an update on its disputes with Golden Phoenix Minerals, Inc.
respecting Ashdown Project LLC.
In late 2006, Golden Phoenix notified Win-Eldrich that, as a result of
non-payment of money, Win-Eldrich's interest in Ashdown would be diluted from
40% to 30.5%. Win-Eldrich has vigorously opposed this claim, which is
presently being arbitrated in accordance with the terms of the Operating
Agreement governing Ashdown. In May, 2008, Golden Phoenix initiated a motion
for summary judgment before the Arbitrator on the issue of whether WEG could
avoid the timely application of the dispute mechanism in a side agreement by a
"condition precedent" written for its own benefit when it did not use due
diligence. The Arbitrator denied Golden Phoenix's motion in an Order issued
July 24, 2008 finding that various issues of fact continue to be disputed by
the parties which will be ultimately resolved at a hearing on the merits. At
such hearing Golden Phoenix may raise identical issues again. No date of the
hearing has been set. The matter will now proceed through a discovery process.
The parties are also discussing issues relating to 2007 budget
expenditures. The parties have been unable to resolve this issue, which is set
for mediation on July 31, 2008. Should mediation not result in a settlement,
this issue will proceed to binding arbitration.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information:
For further information: Perry Muller, President of Win-Eldrich Mines
Limited at (402) 435-7206