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Alturas reports on contract dispute - Huilacollo Gold Project, Southern Peru
TSX-V: ALT BVL: ALT TORONTO, Oct. 30 /CNW/ - Alturas Minerals Corporation ("Alturas" or the "Comp...
About this update from Alturas Minerals Corp.
[{"type":"text","content":"\n\n\n\nTSX-V: ALT\nBVL: ALT\n\n\nTORONTO, Oct. 30 /CNW/ - Alturas Minerals Corporation ("Alturas" or the\n"Company") (TSXV: ALT) announces that a contract dispute has arisen between\nthe Company and Inversiones Sol y C S.A.C. ("Inversiones") regarding the\nCompany's 2,000 hectare Huilacollo high-sulfidation epithermal gold project\n(the "Huilacollo Project") in Southern Peru.\n\n\nThe Huilacollo Project is under option to Alturas from Inversiones\npursuant to an option agreement dated August 25, 2004, as amended. The\nagreement is for a term of five years. For the most recent update on the\nHuilacollo Project, see the Company's Management Discussion and Analysis for\nthe three and nine months ended June 30, 2008 (which may be accessed at\nwww.sedar.com) under the heading "Huilacollo Gold Project, Peru" at page 5.\n\n\nUnder the Agreement, a payment of US$1.2 million was due to be paid to\nInversiones on August 25, 2008. Prior to that date, the Company advised\nInversiones of its request for an extension of this date. Earlier requests for\nsimilar extensions had been agreed to by Inversiones. Negotiations ensued, and\nin the third week of August, the Company put forward a final proposal for a\npayment of US$200,000 to extend the date. That proposal was orally accepted,\nbut in a subsequent letter, Inversiones added an additional term - that\nnotwithstanding the extension, the US$1.2 million was earned and would have to\nbe paid rather than being a matter at the discretion of the Company.\n\n\nThe Company rejected Inversiones' position and stated that the accepted\nextension included the ability of the Company to walk away from the Project,\nand not make the US$1.2 million payment. Negotiations continue between the\nparties, but Inversiones has now indicated that it intends to commence\narbitration proceedings. The Company denies Inversiones' claim based on the\nagreed extension, and has engaged counsel for the Company to vigorously\ndispute any claim.\n\n\nAs of the date hereof, no proceedings have been commenced by either\nparty, and it is premature to determine the timing or potential outcome of any\nsuch proceedings. The claim of Inversiones, taken with current market\nconditions, substantially increases concerns regarding the ability of the\nCompany to raise additional capita...