RE: Update on EMC Metals Corp's Nyngan Project EarEMC Metals Corp. (the "Company" or "EMC") (TSX: EMC) announced today that it received notice of a lawsuit filed against the Company on Friday June 22, 2012 in the Supreme Court of Victoria, Australia, by our Nyngan Scandium Project partner, Jervois Mining Limited ("Jervois").
The Company delivered a timely NI 43-101 F1 Technical Report on the Feasibility of the Nyngan Scandium Project ("the Report") to the JV Partners in February 2012, designed to meet the specific requirements set out in the JV Agreement for a 50% earn-in to the Nyngan Scandium Project (the "Project"). EMC believes that all requirements for the Report as defined in the JV Agreement were met, however Jervois subsequently rejected the Report as inadequate, and denied EMC its 50% earn-in interest in the Project.
On March 23rd, 2012, EMC announced that it would enter without prejudice discussions with Jervois to attempt to resolve the dispute, which the Company has done. Those discussions have now ceased, with the initiation of formal legal action taken by Jervois.
The lawsuit brought by Jervois contends that;
-- The JV Agreement (including EMC's earn-in right) was automatically terminated because the Report failed to meet the standards set out in that agreement,
-- EMC's formal Dispute Notice (dated March 13, 2012) has no force and effect as the JV Agreement was effectively terminated by Jervois prior to that date, and
-- EMC must remove legal claims placed on the Nyngan property by EMC that prevent Jervois from transferring property interests.
EMC welcomes an independent review of the facts and continues to maintain that it has met the conditions under the JV Agreement to earn a 50% joint venture interest in the Project. The Company will take all lawful steps to secure its proprietary rights to the 50% joint venture interest, including vigorously defending its position in a venue where this matter will be decided by a suitably informed and independent authority, who can deliver a binding resolution to the matter.
About EMC Metals
EMC owns a 100% interest in the Springer tungsten mine in Nevada, USA. Strong tungsten prices and tight supply conditions, combined with the refurbished mill and existing tungsten resource on the property, support a strategy to seek a near term restart of the Springer facility. EMC also owns a 100% interest in the Carlin Vanadium property near Carlin, Nevada. Both properties have current NI 43-101 compliant resource estimates, available on the Company website and on SEDAR.
On February 29th, 2012, EMC announced that its earn-in on the Nyngan Scandium Project was rejected by our JV partner, Jervois Mining Limited. We maintain that all project earn-in conditions outlined under the JV Agreement have been met, and we intend to take all lawful steps to secure our proprietary rights to a 50% joint venture interest.
The technical information in this news release has been reviewed by Willem Duyvesteyn, a Qualified Person as defined by National Instrument 43-101. Mr. Duyvesteyn is employed by EMC Metals Corp.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
This press release contains forward-looking information that does involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements regarding long term prices for tungsten, our ability to find and retain qualified management and key technical persons to operate the tungsten project, our ability to raise the necessary capital to fund a restart of mining operations, the short term or long term economic feasibility of tungsten production at our Springer facility, and in general statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. Forward-looking information in this press release is based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice, and by other risk factors disclosed in our public filings. Except as required by law, EMC assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
SOURCE: EMC Metals Corp.
EMC Metals Corp. Investor Relations-Nevada, 775-355-9500 info@emcmetals.com or Windward Global, Charlotte, NC Sara Boatright Patterson, 1-704-588-8600 www.emcmetals.com