SRGE'S CLAIM THAT IT WAS MINING AT CINCO WAS PROVEN TO BE TOTALLY BOGUS!!!
Bandera Gold Provides Update on Cinco Minas and Gran Cabrera Properties Following Release of Independent Report
Fri, 22 Mar, 2013 9:22 AM
Edmonton, AB, March 22, 2013-Bandera Gold Ltd ("Bandera" or the "Company") (TSXV:BGL.V - News) is pleased to provide this update on the Cinco Minas and Gran Cabrera Mexican Mining Properties (the "Properties") as a follow up to its February 5, 2013 news release which cited the results of an Independent Report confirming the Cinco Minas property has been non-operational for several years.
As a status update, the Company is releasing this summary regarding the liens it has in place on the 17 mining concessions that comprise the Cinco Minas and Gran Cabrera Properties:
-On February 26, 2008, Bandera initiated a Mercantile lawsuit (the Mercantile Lawsuit) in Guadalajara, claiming that Minera San Jorge, S.A. de C.V., (MSJ) had failed to comply with the Option Agreement and seeking enforcement of the same.
-On March 7, 2008 the State Court, Commercial Division of Guadalajara issued certain rulings designed to protect Bandera's position while the Mercantile Lawsuit ran its course. These rulings included, among other things, the filing of liens (the Liens or Embargoes) on the 17 mining concessions covered by the Option Agreement and the registration of the Mercantile Lawsuit on each of the 17 mining concessions' files with the Mining Public Registry (MPR).
-On July 7, 2009 - Bandera obtained a favourable first instance ruling (the First Instance Ruling) from the Fifth Mercantile Court, confirming the validity and enforceability of the Option Agreement and ordering title to the Mining Concessions be transferred as contemplated by the Option Agreement.
-From 2009 to 2012, a number of procedural challenges were initiated by MSJ, however none of the rulings in these matters have reversed the First Instance Ruling.
-These preventive measures will continue until such time as the courts dictate otherwise.
Bandera is continuing to litigate the case and pursue its legal remedies, and it is confident that the appropriate Mexican courts will ultimately ratify and uphold what was decided in the First Instance Ruling.
Now that the findings of the Independent Report regarding the alleged mining activities on the Properties by Southridge Enterprises Inc. have been disclosed in Bandera's news release dated February 5, 2013 it is the intention of Bandera to continue to focus on the litigation.
Once the litigation has been completed and Bandera receives its interest in the Properties, Bandera will proceed with the following:
1.Complete an updated NI 43-101 Technical Report on the Properties which will include a new development plan;
2.Re-establish relationships with the local Cinco Minas community; and
3.Secure financing for the development plan.
Stephen Roehrig, President and CEO of Bandera Gold concludes: "It is important that our shareholders are aware that Bandera has a continuing commitment to the success of its Cinco Minas and Gran Cabrera Mining projects and that the negativity created by Southridge Minerals Inc. has not affected that commitment."
On Behalf of the Board
Stephen Roehrig
President and CEO
For further information please contact:
Stephen Roehrig, President and CEO (780) 465-4129
Web: www.banderagold.com
