Business
Update on litigation in the K
Update on litigation in the K.
About this update from Shearwater Group Plc
[{"type":"text","content":"\n RNS Number : 8235Z Aurum Mining PLC 20 January 2011 \n \n\n\n\n\n\n \n\n\n20 January 2011 \n\n\n\n\n \nAURUM MINING PLC\n(\"Aurum\" or the ''Company\")\n \nUpdate on litigation in the Kyrgyz Republic\nFollowing its announcement of 27 October 2010, the Company is giving an update on the on-going litigation in the Kyrgyz Republic.\nIn October 2010, Aurum announced that its wholly owned subsidiary, Tryden International Limited (\"Tryden\"), was named, amongst others, as a defendant to a civil case which was heard in the Talas Inter-District Court (the \"Court\") in the Kyrgyz Republic. The case was brought against Tryden by the General Prosecutors Office of the Kyrgyz Republic (the \"GPO\") and the claim was upheld by the Court. The GPO's case, which challenges transfers of equity between Aurum and its local partner, Invest-center Talas (\"ICT\"), in 2009 and early 2010, could result in Aurum being stripped of its 10% residual stake in the Andash asset and the stake being offered to the Government of the Kyrgyz Republic. In October 2010, Aurum announced that it was going to appeal the decision of the Court.\nAs expected, and although no formal judgement has yet been issued, the provincial Court has rejected Tryden's appeal. This means that Tryden can now appeal to the Supreme Court of Kyrgyzstan in Bishkek. Both Aurum and ICT have always believed that the Supreme Court offers the best chance of getting a fair and reasonable hearing of the case. Aurum and ICT continue to believe that the case against Tryden and ICT is without merit and will be lodging an appeal accordingly. Tryden and ICT have a one year period in which to launch their appeals.\nIn other relevant developments, ICT has recently lodged a claim against Kentor Gold Limited (\"Kentor\") for, amongst other things, breaches of certain provisions that have led to, and assisted in, the current Court processes against Tryden and ICT. Kentor, Tryden and ICT are the three shareholders in Andash Mining Company (\"AMC\"), the Company that holds the Andash asset, and the said breaches relate to provisions in the Charter of AMC by which, under the laws of the Kyrgyz Republic, all shareholders are bound.\nAurum continues to take legal advice on all related matters and, in addition to launching Tryden's appeal to the Supreme Court, intends to take approp...