Balaton Power, Visa to restart bauxite project
2009-10-02 16:38 ET - News Release
Mr. Michael Rosa reports
SETTLEMENT OF LAWSUIT AND AGREEMENT WITH VISA INTERNATIONAL LTD. FOR DEVELOPMENT OF GANDHAMARDAN BAUXITE PROJECT
Balaton Power Inc.'s wholly owned subsidiary Continental Resources (USA) Ltd. (CRL) has entered into an agreement in settlement of the litigation with Visa International Ltd. of Kolkata, India, a leading Indian business conglomerate. Under the terms of the settlement, CRL settled all outstanding disputes with Visa and thereby reinstated its agreement -- dated Feb. 15, 2005, whereby Visa (as to 74 per cent) and CRL (as to 26 per cent) will establish a corporation in the state of Orissa, India, to jointly develop the Gandhamardan bauxite project. Under the terms of the agreement, CRL will receive from Visa incremental cash payments, upon the achievement of certain milestones, during the development of the Gandhamardan bauxite project. The parties agree to work together in good faith with the Orissa Mining Corporation and its requirements for the ratification of the revised original agreement between CRL and OMC. The development of the Gandhamardan bauxite project has been conceived as a joint venture between the Orissa Mining Corporation (OMC), an Orissa state-owned enterprise, and CRL, and is pending signatures to the revised joint venture agreement between the two entities. The original memorandum of understanding and joint venture agreement between CRL and OMC were signed on Oct. 1, 1996, and April 18, 1997, respectively.
Visa is a leading Indian business conglomerate with significant financial and technical resources, expertise ,and project experience in managing large operations in India and abroad. CRL and its parent company Balaton Power are extremely pleased to have the litigation resolved and the involvement and support of Visa in the development of the Gandhamardan bauxite project. For further information on Visa International Ltd. please visit its website at www.visa-group.com