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VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 5, 2013) - Sanatana Resources Inc. ("Sanatana" or the "Company") (TSX VENTURE:STA) announces that it has commenced binding arbitration proceedings with respect to certain disputes Sanatana has with Trelawney Augen Acquisition Corp. ("TAAC"). The disputes arise under a mining option and joint venture agreement between the parties dated February 14, 2011 (the "Option and JV Agreement").
Commenting on the arbitration proceedings, Peter Miles, Chief Executive Officer of Sanatana, stated: "It has been Sanatana's preference since the start of the dispute with TAAC to amicably reach a settlement. Our attempts to reach an amicable settlement have proven unsuccessful; accordingly, Sanatana has referred this matter to arbitration and we will strongly pursue our claims in accordance with the terms and conditions of the Option and JV Agreement." Mr. Miles further stated: "The arbitration proceedings are only one arm of the legal proceedings involving the Watershed Property. As disclosed most recently in our news release dated July 4, 2013, Trelawney Mining and Exploration Inc. ("Trelawney"), a subsidiary of IAMGOLD Corporation and the parent corporation of TAAC, is seeking easements over 17 of the mining claims comprising the Watershed Property. We object to the proposed easements on a number of grounds and look forward to presenting our position to the Ontario Mining and Lands Commissioner. Notwithstanding the current arbitration and the hearing before the Ontario Mining and Lands Commissioner, Sanatana will continue to seek a negotiated resolution with Trelawney and TAAC to resolve the impasse."
Arbitration Proceedings
In accordance with the Option and JV Agreement, the binding arbitration will be heard by a panel of three arbitrators and will be held in Vancouver, British Columbia. Each party must appoint one arbitrator, and the third arbitrator will be appointed by the parties' two designated arbitrators.
Sanatana will issue further news on the arbitration as developments warrant.
Ontario Mining and Lands Commissioner Hearing
A hearing date has not yet been set for Trelawney's easement application. Sanatana will issue further news on the hearing before the Ontario Mining and Lands Commissioner as developments warrant.
About the Company
Sanatana Resources Inc. is a Canadian mineral exploration and development company focused on its Watershed Property in Ontario. Sanatana entered into an option and joint venture agreement with Trelawney Augen Acquisition Corp. (formerly Augen Gold Corp.) ("TAAC") which grants Sanatana an option to acquire up to 51% of the Watershed Property consisting of 46 mining claims totalling approximately 19,006 acres and located within the Townships of Yeo, Chester, Neveille and Benneweis. As at November 2012, Sanatana exercised its first option and is the legal and beneficial owner of 50% of the Watershed Property. Sanatana has until March 2016, to decide whether to exercise its right to acquire a further 1% in the Watershed Property.
In June 2012 IAMGOLD Corporation completed its acquisition of Trelawney Mining and Exploration Inc. and became the sole indirect shareholders of TAAC. With an experienced management team and board of directors, the Company has the ability required to identify, develop and fund economic mineral properties. Sanatana is based in Vancouver and is listed on the TSX Venture Exchange (TSX VENTURE:STA). In 2013, Sanatana expanded the Watershed Property by acquiring, for the benefit of Sanatana and TAAC, a 20% interest in three additional mining claims located in Yeo and Chester Townships, Ontario.
SANATANA RESOURCES INC.
Peter Miles, President and Chief Executive Officer
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 "plans", "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 Sanatana'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 Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. |