Ventana Provides Corporate Development Update
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Nov. 26, 2009) - Ventana Gold Corp. (TSX:VEN) (“Ventana” or “the Company”) has been advised that Sociedad Minera La Bodega Limitada (or the “Vendor”), the owner of the mineral rights to the La Bodega property in Colombia, is seeking an arbitration in relation to an option agreement (the “Option Agreement”) with CVS Explorations Ltda. (“CVS”), Ventana’s 100%-owned subsidiary. The Option Agreement provides for CVS to acquire the La Bodega property mineral rights through a series of staged payments as detailed below.
The request for arbitration is an attempt by the Vendor to invalidate the Option Agreement and have the property returned to the Vendor. CVS has operated under the Option Agreement for almost four years without any performance default or allegation of default. The Vendor’s request for arbitration is based on arguments that the Option Agreement fails to comply with applicable Colombian law and the Vendor has refused to abide by the terms of the Option Agreement.
Ventana has well respected Colombian legal counsel who prepared the Option Agreement. This counsel, together with counsel from one of Colombia’s largest and most respected legal firms, from whom Ventana has sought a second opinion, has advised Ventana that the Vendor’s argument that the Option Agreement fails to comply with applicable Colombian law is wholly without merit. Both sets of counsel fully expect the Option Agreement to be upheld as valid and enforceable by the arbitration panel. Ventana will exercise all means to protect its rights under the Option Agreement.
Ventana President and CEO Steve Orr said: “We believe this is an attempt to obtain more money for the mineral rights now that we have substantially increased the value of the property through our exploration success. There have been no changes to the mining laws and there are no government agencies involved in the dispute. We are confident in the integrity of the regulatory system and the application of justice in Colombia. Ventana has all the necessary permits in place to continue exploration and technical work on the property and the Vendor cannot legally stop Ventana from doing further work on the property.”
Ventana’s initial 43-101 resource estimate on the La Bodega property is due in the first quarter of next year and the Company has a scoping study under way, with completion expected mid-2010. This work remains on schedule.
To read the rest of this news release please go to VentanaGold.com
