Could someone logically explain how this management could possibly allow this to happen? How could this mangement miss making the option payments on time on such a valuble piece of land? There is no excuss for this and does reflect badly on this management team. This comes from Calvista (CVS) news release dated 3-April-2012
In addition, further to the Company's press releases dated December 21, 2011 and February 8, 2012 where the Servicio Geologico Colombiano (formerly Ingeominas), Colombia's mining authority, by Resolution GTRB-0208 dated December 15, 2011 transferred 100% title of license 90-68 ("El Carmen") to Calvista and denied the relief sought by Galway Resources Holdco Ltd. ("Galway"), Galway has now filed a lawsuit before the First Civil Court of the Circuit of Bucaramanga in the City of Bucaramanga, Santander, against the former Titleholders and Calvista Colombia. In its claim, Galway admits that it did not adhere to payment terms and deadlines in its option agreement. Notwithstanding this admitted fact, Galway seeks to obtain a declaration that its option agreement with the former Titleholders is valid and that Calvista's agreement is invalid. Galway has estimated the damages at approximately US$340,000, and also alleges a "loss of profit" resulting from its inability to exploit the mineral reserves in the area El Carmen, which they are valuing at approximately US$15 million using a theoretical amount of 100,000 ounce gold reserve estimate.
Galway has also made a mediation request before the Chamber of Commerce of Bogota, as a pre-requisite to commencing civil proceedings against Calvista Colombia, alleging unlawful competition practices by Calvista Colombia, namely tortious interference with contract and acts of discredit resulting from Calvista Colombia's execution of an option agreement in respect to El Carmen. The mediation hearing will be held on April 12, 2012.
The Company's Director David Oyuela who represents the "Sociedad Minera la Baja California, S.A.S.", a Colombian association with more than 300 local miners and families who hold 21% of the shares in Calvista Gold, stated on behalf of the Company: "Galway failed to pay its option agreement on El Carmen, and, in addition, the option agreement expired. We acted in good faith to negotiate with the former title holders and in strict accordance with the Colombian Mining Authority. Calvista is now the sole registered holder of El Carmen, which is a small part of Callejon Blanco prospect. We fully disagree with Galways' claims and intend to defend our rights strongly."
Calvista Colombia has retained Colombian counsel Cardenas & Cardenas to defend both of these matters vigorously and believes that the claims are without merit.
https://www.stockhouse.com/financialtools/sn_newsreleases.aspx?qm_symbol=T.CVZ&newsid=8470248
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