Business
El Nino Ventures Inc. corporate update Democratic Republic of the Congo
El Nino Ventures Inc. corporate update Democratic Republic of the Congo
About this update from Metalquest Mining Inc
[{"type":"text","content":"\n\n\n\nVANCOUVER, Mar. 5, 2010 (Canada NewsWire Group) -- /CNW/ -- El Nino Ventures Inc. (\"ELN\" or the \"Company\") (TSX.V: ELN; FSE: E7Q) wishes to announce an update on the Company's business affairs in the Democratic Republic of the Congo (the \"DRC\"). Upon review of the Company's exploration portfolio in the DRC, ELN has made a decision to terminate its agreement with Phoenix Mining Corporation SPRL (\"PMC\") to acquire a 70% interest in a joint venture company into which PMC purportedly could transfer its rights to the DRC research permit designated as PR9316.As a result of ELN's notice of termination of the agreement with PMC, a claim was initiated by PMC in the DRC against the Company. At the time this claim was filed, George Kavvadias was a principal shareholder of PMC. The lawsuit alleges that ELN is obligated under the terminated agreement to make a first anniversary payment to PMC of $250,000 as well as to pay damages. Management's position is that the DRC is not the forum for disputes under that agreement and that no such payment obligation exists for various reasons including that the termination notice was given in a timely manner prior to the first anniversary of the agreement. The Company has retained legal counsel in the DRC to address PMC's claims, all of which the Company firmly believes are unfounded and without any merit.The Company was also served at the same time with a claim filed in the DRC by GCP Group Ltd. (\"GCP\"). George Kavvadias is also the Chief Executive and principal shareholder of GCP. In 2007, Mr. Kavvadias had been retained on a consulting basis as DRC Country Manager for ELN. In connection therewith, he managed Infinity Resources SPRL, a DRC joint venture company owned by ELN (as to 70%) and GCP (as to 30%). GCP is claiming fees and expenses alleged to be owing to it by ELN in connection with the provision of services alleged to have been rendered by GCP to Infinity Resources SPRL. El Nino has retained legal counsel in the DRC to respond to these claims which it firmly believes are unfounded and without any merit.The Company is also considering initiating counter claims relating to the above-mentioned lawsuits and joint venture agreements.About El Nino Ventures Inc.El Nino Ventures is a mineral exploration company, focused on copper/cobalt exploration in the DRC (see releases January 12...