MBMI Intends to Vigorously Defend Palawan Alpha Lawsuit
RICHMOND HILL, ONTARIO--(Marketwire - Oct. 31, 2012) - MBMI RESOURCES INC. ("MBMI") (TSX VENTURE:MBR) announces that it has received a complaint filed against it and other parties by Palawan Alpha South Resource Development Corporation ("Palawan Alpha") in a regional trial court in the Philippines (the "Complaint").
In the Complaint, Palawan Alpha asks for the rescission of the following related agreements: (a) the Call Option Agreement executed by and between Palawan Alpha and MBMI on April 27, 2007; (b) the Royalty Agreement executed by and between Palawan Alpha and Narra Nickel Mining and Development Corporation ("Narra Nickel") on March 12, 2008; and (c) the Deed of Assignment with Assumption of Liability executed by and between Palawan Alpha and Mr. Jose Leviste, Jr. on March 8, 2012 (collectively, the "Agreements"). MBMI currently holds a 40% direct interest in Narra Nickel and until recently also held an indirect interest in that company.
In the Complaint, Palawan Alpha alleges that, under the Royalty Agreement and the Call Option Agreement, Narra Nickel and/or MBMI purportedly had the obligation to pay royalties equivalent to 5.5% of net revenue returns on the Narra Nickel mining operations. Palawan Alpha further alleges that no royalty payments were made and that such non-payment constitutes a material breach for which Palawan Alpha may to rescind the Agreements.
Production on the property in question has been frustrated by ongoing litigation concerning permits necessary to operate the property. MBMI considers that the possible payment due to Palawan Alpha under the Royalty Agreement is not a material amount. Nevertheless, having consulted with local counsel in the Philippines, MBMI intends to vigorously defend itself against the Complaint.
For further information relating to MBMI or this release, please refer to MBMI's website at www.mbmiresources.com.
The foregoing information may contain forward-looking statements relating to the future performance of MBMI Resources Inc. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from MBMI's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by MBMI with the TSX Venture Exchange and securities regulators. MBMI Resources Inc. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
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MBMI Resources Inc.
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