TSX VENTURE EXCHANGE: TSXV-PAW
CMK files for International Arbitration against Kenya
June 18, 2015 News Release 2015 -13
Vancouver, BC, Canada: Pacific Wildcat Resources Corp. Vancouver, BC, Canada: Pacific Wildcat Resources Corp. (TSXV-PAW) ("PAW" or the "Company") wishes to advise that its UK subsidiaries Cortec Pty Limited ("Cortec UK") and Stirling Capital Ltd ("Stirling") have jointly filed a request for arbitration against the Republic of Kenya at the International Centre for Settlement of Investment Disputes ("ICSID") under the UK-Kenya Bilateral Investment Treaty ("BIT"). Amongst other things, the companies claim that Kenya unlawfully expropriated their investments and breached its BIT obligation to treat them fairly and equitably.
The request for arbitration is also made by Cortec Mining Kenya ("CMK"), a Kenyan company which is entitled to be treated as a UK company under the BIT because it is majority-owned by Cortec UK and Stirling.
CMK's Chairman, Don O'Sullivan commented, "We were surprised at how quickly the climate for foreign investment in the Kenyan mining sector deteriorated after the elections in 2013. We have not been compensated for the expropriation of our subsidiaries' investments in Kenya and we see arbitration in the international arena as the only avenue left for us to be given a fair hearing and a chance to recover our considerable losses."
On 29 July 2013, whilst conducting licensed mining activity in Kenya's Kwale District, CMK announced an inaugural Rare Earth Resource and updated Niobium Resource for the Mrima Hill project in Kenya. One week after CMK made this announcement, Kenya's Cabinet Secretary for Mining and the Environment, Mr. Najib Balala, purported to cancel CMK's mining licenses. Mr. Balala made this announcement in a national television broadcast. CMK subsequently challenged the revocation of its mining licences in the Kenyan courts but, after a legal battle that lasted almost two years, the High Court of Kenya upheld the Minister's actions.
CMK's Kenyan lawyers have lodged an appeal against the High Court judgment.
CMK, Cortec UK and Stirling have instructed London-headquartered international law firm Clifford Chance to act as their legal counsel in the international arbitration against Kenya. The Clifford Chance team will be led by Audley Sheppard QC in London, who will be supported by Ben Luscombe and Dr Sam Luttrell (from the Perth office of Clifford Chance) and Dr Romesh Weeramantry (from the Hong Kong office).
Mr. O'Sullivan added, "We are very pleased to have a firm of Clifford Chance's calibre representing our companies in this case. We feel that, with the help of the Clifford Chance team, we are well positioned to obtain compensation for the unlawful measures that were taken against our property in Kenya".
The Company will provide further information as the matter progresses.
ON BEHALF OF THE BOARD OF DIRECTORS OF PACIFIC WILDCAT RESOURCES CORP.
"Don O'Sullivan", President & CEO
Contact information:
Pacific Wildcat Resources Corp. Email: [email protected] Telephone: +1-250-768-0009
Pacific Wildcat Resources Corp. website: www.pacificwildcat.com
About Pacific Wildcat Resources Corp. - Pacific Wildcat is a TSX Venture Exchange listed Canadian mineral exploration company having the trading symbol "PAW". PAW owns 100% of Stirling Capital Ltd and Cortec Pty Ltd, two UK companies that between them own a 70% interest in Cortec Mining Kenya Limited, a Kenyan company which has the mining rights to the Mrima Hill Niobium and Rare Earth Project in Kenya. In July 2013 the Company completed an updated independent Niobium Resource estimate for 47.8 million tonnes at 0.66% Nb2O5 (Indicated Classification) plus 94.4 million tonnes at 0.73 % Nb2O5 (Inferred Classification) at a 0.2% Nb2O5 cut-off. In July
2013 the Company completed an inaugural independent Total Rare Earth Resource estimate for 48.7 million
tonnes at 4.44% TREO (Indicated Classification) plus 110.7 million tonnes at 3.61 % TREO (Inferred Classification)
at a 1% TREO cut-off. With the Mining Licenses revoked by the Cabinet Secretary, Ministry of Mines in 2013, the
Company commenced legal action against the Cabinet Secretary, Ministry of Mines and others. Following an initial unsuccessful legal action the matter is now before the Kenyan Court of Appeal. For information about Pacific Wildcat Resources Corp. and its development and exploration activities shareholders and other interested parties are invited to visit the company's website at www.pacificwildcat.com. More information on the foregoing mineral resource estimates is included in the Company's news release dated July 29, 2013, titled "High Grade and Large Tonnage Niobium and Rare Earth Resource for Mrima Hill" and in the Technical Report dated September 1, 2013, titled "NI 43-101 Technical Report for the Mrima Hill Niobium and Rare Earth Project, Kwale District, Kenya", which is filed on www.sedar.com and the Company's website. Mr. Benjamin C. Pollard, principal geologist of BMGS Perth Pty Ltd, a qualified person (as defined in NI 43-101) has reviewed and approved the technical information
contained in this news release.
Investors are cautioned that trading in the securities of Pacific Wildcat Resources Corp. should be considered highly speculative. The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Cautionary note: This press release may contain forward looking statements on matters such as cash flow, capital expenditures, work programs, the estimation of mineral resources and the Company's plans with respect to the exploration and development of its projects and its investment plans regarding TSX Venture Exchange approval and the completion of financing activities. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and a number of factors, including regulatory matters, metals prices and, but not limited to, general economic factors. There can be no assurance that the Company will be able to obtain all the permits that are required in order to commence mining operations at the Mrima Hill Project.