News
Golden Eagle Moves Nevada State Court for Writ Ordering Yukon-Nevada and Queenstake to Restore Possession of the Jerritt Canyon Mill to Golden Eagle
2009-09-22 13:17 ET - News Release
SALT LAKE CITY, UT -- (MARKET WIRE) -- 09/22/09
Golden Eagle International, Inc. (OTCBB: MYNG) reported today that it has filed a motion asking for an order restoring it to possession of the Jerritt Canyon mill in its $40 million lawsuit against Yukon-Nevada Gold Corp. (YNG) and Queenstake Resources USA, Inc. (Queenstake) in the Fourth District Court for Elko County, Nevada.
Golden Eagle, which was given possession of the Jerritt Canyon mill as its operator in early September of 2008, alleges in its motion that its possessory right was terminated with 3 hours notice on June 10, 2009 in violation of Nevada state law. The motion further alleges that Queenstake and YNG are guilty of forcible entry and forcible detainer in the abrupt and unreasonable manner in which Golden Eagle's possessory right to the Jerritt Canyon mill was terminated, and then further illegally interfered with that possessory right by unlawfully detaining the mill after Golden Eagle's termination.
The Company further reported that it is continuing its foreclosure proceedings on $2.23 million in mechanic's liens against YNG and Queenstake's Jerritt Canyon mill.
Golden Eagle filed a $40 million Counterclaim and Third-party Complaints against YNG, Queenstake USA, Queenstake Resources Ltd. ("Queenstake Canada") (both wholly owned subsidiaries of YNG) and Francois Marland ("Marland"), a French citizen and YNG investor. The Counterclaim and Third-party Complaints were filed on July 9, 2009 in the Fourth District Court for Elko County, Nevada, together with an answer to Queenstake USA's complaint filed on June 10, 2009 (See, Golden Eagle's Current Report on Form 8-K filed with the U.S. SEC on June 12, 2009) and can be found as an exhibit to a Current Report filed on Form 8-K with the U.S. Securities and Exchange Commission (U.S. SEC) on July 9, 2009. In its Counterclaim and Third-Party Complaints, Golden Eagle alleges that YNG and Queenstake committed fraud, misrepresentation, material omissions and deceptive business practices in their relations with Golden Eagle and in their breach of Golden Eagle's mill operating agreement. The Company also alleges that YNG and Queenstake committed acts of oppression, fraud or malice, express or implied, and that Golden Eagle is entitled under Nevada law to recover punitive damages, which are calculated as three times the amount of compensatory damages.
YNG and Queenstake filed a reply to Golden Eagle's Amended Counterclaim and answered its Third Party Complaints with general denials on August 4, 2009.
The Company recommends that you review its disclosures, risk statements, previous press releases, annual reports, quarterly reports and current reports found at its website: https://www.geii.com.
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