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“Geovic Mining
Corp. aims to be the world’s largest primary producer of cobalt by late 2012”
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GEOVIC MINING RESOLVES GEOVIC
CAMEROON ACCOUNTING DISAGREEMENT
January 12, 2010 –
Denver, CO - Geovic Mining Corp. (“Geovic” or “the Company”, TSX: GMC,
OTCBB:GVCM), is pleased to announce it has resolved the previously disclosed
accounting disagreement with Societe Nationale d’Investissement du Cameroun
(“SNI”). Geovic indirectly owns 60.5% of Geovic Cameroon plc (“Geovic
Cameroon”), the entity that owns the Nkamouna cobalt/nickel/manganese
project, while SNI owns or represents 39.5%.
As discussed in Press Releases
dated June 24th and June 26th, 2009, the two parties
previously disagreed on the accounting treatment of foreign exchange gains
applicable to capital contributions made by Geovic Mining to Geovic Cameroon
prior to 2007. SNI had also initiated litigation for the removal of
Deloitte & Touche Afrique Centrale Sarl (“Deloitte”) as Geovic Cameroon’s
statutory auditor.
Both parties have agreed to settle the disagreement as follows:
·
Any exchange rate gain registered in Geovic Cameroon’s accounts will
be shared by all Geovic Cameroon shareholders on a proportionate basis.
·
Deloitte will remain as Geovic Cameroon’s statutory auditor.
·
Pending litigation between SNI and Geovic Cameroon will be withdrawn.
Notably, the settlement is expected to have no material impact on
the financial statements of Geovic Mining.
Geovic Mining CEO John E. (“Jack”) Sherborne stated: “Amicable
resolution of this disagreement is another positive milestone in the
Company’s efforts to commence financing and construction of Nkamouna in the
second half of 2010. Geovic and SNI look forward to continued
co-operation in our mutual target of building the world’s largest primary
cobalt mine.”
About Geovic
Geovic is a U.S.-based corporation whose principal asset is 60.5% of
a significant cobalt-nickel-manganese deposit in the Republic of Cameroon,
Africa. Additional Company initiatives and
Project information may be found on the websites www.geovicenergy.com, www.sedar.com, and www.sec.gov. For
more information, please go to www.geovic.net
or contact:
Andrew C. Hoffman, CFA
San Diego Torrey Hills
Capital
Vanguard
Shareholder Solutions
V.P., Investor
Relations
Direct (858)
456-7300
Direct (604)
608-0824
Geovic
Mining Corp.
info@torreyhillscapital.com
Toll-Free (866)
801-0779
Direct (720)
350-4130
ir@vanguardsolutions.ca
Toll-Free (888) 350-4130
ahoffman@geovic.net
On behalf of the Board
John E. Sherborne, CEO and Director
Cautionary Note Regarding Forward
Looking Statements
Statements contained in this press
release that are not historical facts are forward-looking statements (within
the meaning of Canadian securities legislation) that involve risks and
uncertainties. Forward-looking statements include, but are not limited
to, statements with respect to the withdrawal of litigation and the timing of
financing and expected commencement of plant construction in the second half
of 2010. In certain cases, forward-looking statements can be identified
by the use of words such as “proposes”, “expects”, “is expected”,
“scheduled”, “estimated”, “intends”, or variations of such words and phrases
or state that certain actions, events or results “will” occur.
Forward-looking statements involve known and unknown risks, uncertainties,
and other factors which may cause the actual results, performance, or
achievements of the Company to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
statements. Such risks and other factors include, among others,; actual
results of current exploration activities; conclusions of economic
evaluations; changes in project parameters as plans continue to be refined;
future prices of metals; possible variations in ore reserves, grades, or
recovery rates; failure of plant, equipment or processes to operate as
anticipated; accidents, labour disputes, other risks of the mining industry,
delays in obtaining governmental approvals; our ability to obtain financing
on acceptable terms or at all; and other factors as described in detail in
the Company’s Annual Information Form and Annual Report on Form 10-K,
quarterly reports on Form 10-Q, and other filings with the U.S. Securities
and Exchange Commission and Canadian securities regulatory authorities.
There can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The forward-looking
statements in this press release speak only as of the date hereof. The
Company does not undertake any obligation to release publicly any revisions
to these forward-looking statements to reflect events or circumstances after
the date hereof to reflect the occurrence of unanticipated events.
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