AM GOLD INC. (TSX-V: AMG; Frankfurt: AMX) ("AM Gold") announces that it, along with its wholly-owned Peruvian subsidiary, have filed a joint statement of defense and have also initiated a counterclaim against Rokmaster Resources Corp. ("Rokmaster") as part of the arbitration proceedings commenced by Rokmaster in November 2014. For the purposes of this news release AM Gold and its wholly-owned Peruvian subsidiary are referred to for convenience as the "Company".
The Company maintains that the basis for Rokmaster's claims against it are unfounded and without merit and the Company is seeking that Rokmaster's claim against the Company be dismissed with costs against Rokmaster on a substantial indemnity scale.
With respect to the counterclaim, the Company is seeking an award for damages, in an amount to be assessed, including but not limited to damages on account of the loss in value of the Company's Pinaya gold-copper project due to the significant and material effect of alleged false, malicious and defamatory statements made or authorized by Rokmaster. The Pinaya gold-copper project was valued in 2012 by virtue of the Option and Joint Venture Agreement between the Company and Rokmaster at in excess of $26 million.
About AM Gold Inc.
AM Gold Inc. is a publicly held resource company based in Vancouver, Canada. The Company is listed on the TSX Venture Exchange under the symbol "AMG" and is quoted on the Frankfurt Exchange under the symbol "AMX". The Company is focused on creating shareholder value through the development of the Company's gold and gold-copper projects in the Yukon and Peru while building a portfolio of quality pipeline projects in North and South America. The Company's Red Mountain gold property is located in central Yukon Territory approximately 55 kilometres northwest of the community of Mayo in the Tintina Gold Belt. The Company's Red Mountain gold property consists of approximately 3,600 hectares of contiguous quartz claims. 52 of such quartz claims (1,168 hectares) are held 100% by AM Gold subject to a net smelter returns royalty. AM Gold may reduce the NSR payable on the 52 quartz claims from 2% to 0.5% by agreeing to pay $1,000,000 for the first 1% of the NSR and $750,000 for the second 0.5% of the NSR at any time, at AM Gold's discretion. An additional 131 quartz claims (2,430 hectares) are held 100% by the Company with no NSR. AM Gold's Pinaya gold-copper project is located approximately 775 kilometres southeast of the city of Lima, Peru in the Tintaya Gold Belt. Subject to the option agreement between the Company and Rokmaster Resources Corp., the Company maintains 100% ownership of 35 mining concessions covering the 19,200 hectare Pinaya land position. AM Gold's corporate offices are located Suite 605 - 369 Terminal Avenue, Vancouver, British Columbia, V6A 4C4 (phone: 604-646-0067).
ON BEHALF OF AM GOLD INC.
/s/ "John Fiorino"
John Fiorino
Chief Executive Officer
For further information on AM Gold, please contact Murray Caruth at 1-604-646-0067 or by email at [email protected], or visit AM Gold's website at: http://www.amgold.ca.
Cautionary Statement Regarding "Forward-Looking" Information
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.