LAQ Break-through - WBK win vs. BAA
La Quinta Partner Concludes Successful Court Action Against Banro Sarl in Democratic Republic of Congo
Mar 14, 2007 (Hugin via COMTEX News Network) --
VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- March 14, 2007 -- Wa Balengela Kasai-Investments Congo sprl, ("WB. Kasai-Congo sprl, or WBK") a Congolese mineral exploration and exploitation company and La Quinta Resources Corporation's (TSX VENTURE: LAQ) prospective partner in the Democratic Republic of Congo, has informed La Quinta that it has today received a favourable judgement in the Commercial Court of the Democratic Republic of Congo, refuting the claims by Banro Corporation's (TSX: BAA) wholly owned Congolese subsidiary, Banro Congo Mining sarl (Banro) to hold a prior agreement over WBK's licence areas totalling over 7,010 square kilometres, in Maniema and South Kivu Provinces in South Eastern DRC. In addition to receiving a judgement that the prior protocol between the two companies signed in 2005 was null and void, the Court also found for Costs and Damages totalling US$200,000, in favour of WBK. Banro Lawyers informed WBK they will likely appeal this decision.
Additionally, WBK have now received and have in their possession, the final completed licences for all 32 of the disputed claims. Further, WBK have received a written opinion from the "College des Juristes of the Cabinet of the Cadastre Miniere" (the Government Authority that issues and manages mining licences in D.R. Congo) that these Permis de Recherche are clearly the property of WBK and that the claims made by Banro over this ground are invalid. This decision was signed and acknowledged by the Minister of Mines of D.R. Congo on 24th of February 2007. These two decisions and the completion of the issuance of the licences to WBK, now means that LAQ is free to recommence the due diligence process that was suspended following the Court Action by Banro sarl against La Quinta in October 2006. Work has recommenced on the appropriate 43-101 reports and also on completing the other work necessary for approval by the Regulatory Authorities of the Option and Joint Venture Agreement first announced in August 2006.
The area to be acquired by LAQ is a contiguous group of 32 exploration licences, or Permis de Recherches, totalling some 7,010 square kilometres held by WBK, abutting and occupying all the ground between Banro Corporation's Lugushwa and Namoya properties in the south of the Twangiza - Namoya gold belt and extending some 120 kilometres to the West.
Malcolm Swallow, La Quinta's Chairman, commented from Kinshasa - DRC, "I am very pleased that our proposed partners, Wa Balengela Kasai have successfully defended their rights to freely enter into the proposed Joint Venture and Exploration agreement with La Quinta. They have faced a difficult and extended fight to maintain their Permits against stiff opposition and these decisions by the Cadastre Miniere, the Minister of Mines and the Commercial Court in Congo, plus the issuance of the final Permits to WBK, are a vindication of the process of law in Congo and the new Congolese Mining Act. We are now moving with all dispatch to complete the due diligence process and expect to sign the JV agreement and be on the ground commencing exploration in the near future."
The properties in the WBK licence area have a long history of both formal and informal mining, having been extensively mined, mostly for alluvial gold, by BelgikaOr from the early 1940's to the 1970's when formal mining and exploration ceased. At least six sites of previous mining can be easily identified and artisanal mining continues on much of the target areas today. In August of 2006 LAQ signed a Memorandum of Understanding with WBK to enter into a Joint Venture and Exploration Agreement on these properties. (See LAQ Press Releases 06-10, August 28th 2006) Subsequently Banro sprl informed LAQ that in their opinion they had a prior agreement over the licence areas and issued a writ in the BC courts claiming interference by LAQ in Banro Congo's affairs. (See LAQ Press Release: 06-18, Oct 23rd 2006) Since that time, LAQ has been unable to complete the due diligence process for the MOU with WBK, and requested that WBK clarify the situation in Congo. WBK now has all the permits for the disputed licence area in its possession, duly issued by the Cadastre Miniere, a letter from the Minister of Mines in DRC acknowledging that these Claims are the sole possession of WBK and has now completed its action in Commercial Court in Kinshasa to have Banro Congo's claims over the licence areas declared invalid.
A map showing the location and extent of the exploration leases, the adjacent Kampene Licence area recently optioned by LAQ, (See LAQ Press Release, 07-03, February 20th 2007) and their relationship to the Twangiza - Namoya gold belt, plus further discussion of the initiative by La Quinta Resources in the Democratic Republic of Congo can be found on the Company's web site at www.laquintaresources.com. It is expected that LAQ and WBK will commence work on the Licence area as soon as the due diligence process is complete. WB.Kasai-Congo sprl is based in Kinshasa and holds extensive mineral leases in the DRC. WBK has exploration agreements with two major resource groups for Diamonds and has been instrumental in introducing other Companies into Congo for Copper and Cobalt. WBK's principals are Dr. F. Bodika, a Congolese thoracic surgeon and Mr. J. Malaba, a Congolese businessman both of whom have extensive experience in the mineral industry over the last 30 years.
Malcolm Swallow, the Chairman of the Company, is a Vancouver based Mining Engineer, (B.Sc. - Hons. Mining Engineering - Imperial College, London) with over 35 years operating and management experience in the Industry. He is an Associate of the Royal School of Mines, a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer in the UK. He is also a registered Professional Engineer in British Columbia, Canada and acted as the Qualified Person for this news release, having visited a number of the properties in the 7,000 square kilometres WBK licence area.
On Behalf of the board
Malcolm JA Swallow, Chairman and CEO The TSX - Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release, which has been prepared by management.
Contacts: La Quinta Resources Corp. Glen Watson President (604) 685-1818 or Toll Free: 1-877-891-4653 Email: info@laquintaresources.com Website: www.laquintaresources.com
SOURCE: La Quinta Resources Corporation
SOURCE: La Quinta Resources Corporation
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