AMERICAN CREEK FLASH BACK I QUESS THE AMK POISON IS STARTING TO AFFECT BRE-X.......
We notified you on September 8, 2009 that we had completed our initial earn-in by spending in excess of $5 million dollars exploring Treaty Creek and asked that you transfer title to us according to the terms of our earn-in agreement. At your request, on December 1, 2009 we provided you copies of expenditure invoices totaling approximately $6.2 million. You refused to tell us what expenditures, if any, you disagreed with, and refused to transfer title to American Creek. As a result, we lost the 2010 and 2011 exploration seasons. It would be tragic to lose a third season and miss the opportunity to develop what is likely a world-class property.
In an effort to bring this matter to a conclusion, over the past few weeks we have once again carefully reviewed our exploration expenditures. As a result of our review we have made some adjustments to the figures originally provided to you, taking into account all of the items raised by your legal counsel during discoveries. Some adjustments increased the expenditures, while others decreased the expenditures. Earlier this week our lawyers provided your lawyers with our final adjustments, together with the documents explaining the adjustments. The adjusted expenditures total $6,573,357.48 (a net increase of $89,289.29). We are confident that these expenditures can be proven in court.
We spent over $6.5 million, when we were obligated to spend only $5 million. We are confident that we will win the law suit and will be awarded title, damages and costs, which could be substantial. In the event Teuton is unable to pay any judgment awarded to American Creek, Teuton’s assets, including its 49% interest in Treaty Creek, could be sold to satisfy the judgment as a result of judgment execution proceedings. By proceeding with the lawsuit you are, therefore, risking your 49% interest in Treaty Creek.