/NOT FOR RELEASE OR DISSEMINATION INTO THE UNITED STATES/
TORONTO, Nov. 16 /CNW/ - CITADEL GOLD MINES INC. (CGM.H: NEX Exchange).
Citadel Gold Mines Inc. ("Citadel" or the "Company") announces that it has received correspondence from Trelawney Resources Inc. (TRR-TSXV) ("Trelawney"), alleging that Citadel is in breach of certain of its obligations pursuant to the terms of an option agreement between Trelawney and the Company dated as of January 26, 2007 (the "Trelawney Option Agreement").
The Ministry of Northern Development and Mines (the "MNDM") has disallowed $26,268 of the more than $150,000 in exploration expenditures incurred by the Company on the Massey Property, on the basis that certain of the work carried out by the Company was not carried out on the portion of the Massey Property known as the Salter claims.
Trelawney alleges that the disallowance by the MNDM of this portion of the exploration and development expenses submitted by the Company as part of its work plan on the Massey Property is determinative of whether Citadel has validly incurred the requisite amount of eligible expenditures pursuant to the terms of the Trelawney Option Agreement.
The Company is in the process of reviewing the merits of this position with its legal counsel, and has been in touch with Trelawney to clarify its position with respect to these expenditures, and to discuss Citadel's future intentions with respect to the Massey Property.
The NEX Exchange has neither approved nor disapproved of the information contained herein. The statements used in this press release may contain forward-looking statements, and are based on the opinions and estimates of management, or on opinions and estimates provided to, and accepted by, management. These opinions and estimates include those that relate to geological and mining factors, commodity prices, and marketing parameters used by management, and speak only as of the date of this press release. Forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ, possibly significantly. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual events or results will be consistent with these forward-looking statements. Except as required by law, the Company does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking information, whether as a result of new information, future developments or otherwise. Readers are therefore cautioned not to place undue reliance on any forward-looking statements.