GSPG **NEWS**
GoldSpring, Inc. and N.A. Degerstrom Settle Dispute; Settlement Resolves All Outstanding Legal Issues Between the Companies
2007-12-10 10:50 ET - News Release
GOLD HILL, Nev., Dec. 10 /PRNewswire-FirstCall/ -- GoldSpring, Inc. announced today that the litigation with N.A. Degerstrom has been settled. The lawsuit originated out of a dispute as to how much the Company owed Degerstrom for services provided. Pursuant to a December 27, 2005 agreement, the parties agreed that the amount to be paid by the Company to Degerstrom would be subject to volume reconciliation by aerial survey. GoldSpring, pursuant to prepared aerial and ground surveys, asserted the Company had been over-billed for amounts of ore and waste which had been hauled by Degerstrom. Degerstrom, according to the original lawsuit, claimed in excess of $806,000 plus interest for services provided, totaling approximately $1,000,000. Under the settlement agreement, GoldSpring will pay Degerstrom $250,000 and both parties agree to dismiss their claims against the other. The agreement is subject to GoldSpring remitting $100,000 by December 11, 2007 and the balance of $150,000 by January 31, 2008.
"We believe this settlement is in the best interests of our shareholders, eliminating the legal cost, the uncertainty of this litigation and the legal distractions," said Rob Faber, CEO of GoldSpring, Inc. "This milestone will allow the Company to focus all its financial and human resources to develop its projects in the Comstock."
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