TORONTO, Dec. 2 /CNW/ - Sulliden Exploration Inc. (TSX: SUE) reports that the Supreme Court of Peru has ruled in Sulliden's favour in one of the three appeals filed by Sulliden heard by the Supreme Court of Peru on November 13, 2008 in the legal dispute relating to Sulliden's ownership of the Shahuindo gold/silver property in Peru (See Sulliden's press releases dated October 24, 2008 and November 14, 2008).
The ruling in favour of Sulliden is with respect to the appeal against the decision of the Superior Court of Cajamarca dated January 18, 2008, confirming the decision of the Civil Judge of San Marcos dated January 20, 2006, granting an injunction against certain officers of Sulliden from entering the Shahuindo property.
The most significant part of the hearing before the Supreme Court, which took place in Lima on November 13, 2008 before a panel of five Supreme Court Judges, was the appeal taken by Sulliden against the decision of the Commercial Chamber of the Superior Court of Lima dated August 9, 2007, granting Algamarca's Nullity Petition against the Arbitration Decision of July 2006, which had declared that Sulliden had fully met the terms and obligations of the Shahuindo Transfer Contract dated November 6, 2002 and had properly acquired the property, and declaring null and void the Arbitration on the technicality that Algamarca had not properly agreed to arbitration. The Court has not yet issued its ruling on this matter but Sulliden expects that the decision will be issued prior to the end of the year.
The Supreme Court also heard Sulliden's appeal against the decision of the Superior Court of Lima dated May 9, 2007, which refused Sulliden's appeal against a resolution of the Registry Tribunal of the National Superintendente of Public Registers SUNARP (Peruvian Title Registry) rejecting the original registration of twenty of the Shahuindo mining concessions in Sulliden's name. All mining concessions were subsequently registered, and remain registered, in Sulliden's name. A ruling in this appeal is also expected before the end of the year.
Sulliden remains confident that the outcome of the other appeals will be favorable to Sulliden. However, notwithstanding the hearing of the appeal by the Supreme Court and the most recent ruling issued yesterday, Sulliden is continuing in negotiations with Algamarca on a possible settlement of the Shahuindo litigation and dispute. These negotiations have not yet resulted in a resolution and there can be no assurance that the negotiations will reach a satisfactory conclusion. As in any litigation where there is a dispute, Sulliden cannot predict with certainty the outcome of the negotiations or the outcome of the various appeals.
A more detailed review of the background to the dispute and ongoing litigation may be found in Sulliden's Annual Information Form for the year ended April 30th, 2008, and in Management's Discussion and Analysis for the quarter ended July 31, 2008, and in Sulliden's Press Releases dated October 24, and November 14, 2008, available on www.sedar.com.