Pure Nickel Reports Receipt of US $500,000 Payment

About this update from Galleon Gold Corp

[{"type":"text","content":"\n\n\n\n\n\nTORONTO, June 4, 2012 /CNW/ - Pure Nickel Inc. (TSX: NIC) (the\n \"Company\") announces an amendment to the agreement with CS Mining, LLC,\n and receipt of US $500,000 payment. The amendment to the agreement will\n not impact the Company's planned operations and programs for 2012.\n\n\nPure Nickel and CS Mining have agreed to amend their settlement\n agreement.  Under the original terms of the agreement, CS Mining was\n required to pay Pure Nickel US$1,000,000 on May 14, 2012.  Effective\n today, CS Mining has paid Pure Nickel US$500,000 in partial payment of\n the original note and will place US$500,000 in escrow with an\n independent third party, First American Title Insurance Company.  The\n escrowed funds will be released to Pure Nickel once a disputed net\n profits interest, discussed more fully below, is resolved. This\n amendment does not have any material effect on CS Mining or the overall\n economics of the settlement agreement between CS Mining and Nevada\n Star, other than the fact that the US$500,000 payment is being made\n into escrow instead of directly to Pure Nickel, in light of the\n disputed net profits interest. Due to the indemnification requirements\n of the settlement agreement, CS has no involvement in this litigation.\n\n\nIn the agreement signed with CS Mining in November 2011 Pure Nickel\n provided CS Mining with certain indemnities regarding title to the\n properties that Pure Nickel's subsidiary, Nevada Star had previously\n controlled.  The indemnity specifically addressed a 12% net profits\n interest that was purportedly owned by among others, former officers\n and directors of Nevada Star.\n\n\nOn April 25, 2012 Pure Nickel and Nevada Star filed a complaint in\n United States District Court, District of Utah, Central Division\n against Robert Angrisano, Monty D. Moore, Scott Nicholson and Monty L.\n Moore. Monty D. Moore and Robert Angrisano were former officers and\n directors of Nevada Star and former directors of Pure Nickel.  The\n claim seeks:\n\n\nA court determination that the net profits interest is invalid and\n unenforceable due to, among other things, breach of fiduciary duties.\n\n\nA court determination that the net profits interest is unenforceable\n because it is specific to the mining activities of Nevada Star and it\n is not tied to the mining c...

More updates from Galleon Gold Corp