RENO, Nev.--(BUSINESS WIRE)-- EMC Metals Corp. (the “Company” or “EMC”) (TSX: EMC) previously reported on August 28, 2012 that the Supreme Court of Victoria, in Melbourne, Victoria, Australia had directed that legal proceedings brought by Jervois Mining Limited (“JRV”) against EMC, relating to EMC’s earn-in of a 50% interest in the Nyngan Scandium Project in New South Wales, Australia, be referred to mediation, and that such mediation take place by October 1, 2012.
The mediation took place on September 27, 2012. A settlement did not result.
The Supreme Court proceedings will therefore continue, and EMC will vigorously prosecute its defence and counterclaim, filed on August 20, 2012, seeking relief that includes:
- a declaration from JRV that EMC satisfied the earn-in conditions set out in clause 6.2 of the Joint Venture Agreement and that upon payment to Jervois of the sum of AUD$1.3M (plus GST), EMC is entitled to a 50% interest in the Joint Venture, and
- a damages award, to compensate EMC for the loss and damage that it has suffered as a result of Jervois wrongfully treating the Joint Venture as terminated.
The damages counterclaim pleaded by EMC specifically relates to the delay that Jervois has caused to the project, associated losses to the project, and costs suffered by EMC, ranging up to A$100 million.
Both the defence and counterclaim pleadings are publicly available from the Court in Victoria, Australia.
About EMC Metals:
EMC owns a 100% interest in the Springer tungsten mine in Nevada, USA. Strong tungsten prices and tight supply conditions, combined with the refurbished mill and existing tungsten resource on the property, support the strategy to seek a near term restart of the Springer facility. EMC also owns a 100% interest in the Carlin Vanadium property near Carlin, Nevada. Both properties have current NI 43-101 compliant resource estimates, available on the Company website and on SEDAR.
On February 29th, 2012, EMC announced that its earn-in on the Nyngan Scandium Project was rejected by our JV partner, Jervois Mining Limited. We maintain that all project earn-in conditions outlined under the JV Agreement have been met, and we intend to take all lawful steps to secure our proprietary rights to a 50% joint venture interest.
Caution with respect to Forward-Looking Statements: This press release contains forward-looking information that does involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements regarding long term prices for tungsten, our ability to find and retain qualified management and key technical persons to operate the tungsten project, our ability to raise the necessary capital to fund a restart of mining operations, the short term or long term economic feasibility of tungsten production at our Springer facility, and in general statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. Forward-looking information in this press release is based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice, and by other risk factors disclosed in our public filings. Except as required by law, EMC assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
EMC Metals Corp.
Investor Relations-Nevada, 775-355-9500
Windward Global, Charlotte, NC
Sara Boatright Patterson, 1-704-588-8600
Source: EMC Metals Corp.