Montreal, July 24, 2006: Sulliden Exploration Inc. (Sulliden) is pleased to announce that the Arbitration Tribunal has rendered its unanimous Decision, dated July 19, 2006, in the dispute between its wholly owned peruvian subsidiary, Sulliden Shahuindo S.A.C., and Minera Algamarca S.A. and Exploraciones Algamarca S.A. (the Algamarcas) concerning the Transfer Agreement relating to the Shahuindo property.
In its Decision, the Arbitration Tribunal declared that :
- Sulliden has fully met the terms and obligations of the Transfer Agreement dated November 11, 2002 between Minera Sulliden Shahuindo S.A.C. and the Algamarcas, including fulfillment of the payment of the full purchase price; and
- The Algamarcas, and any third party that could have required any rights from the Algamarcas, must fulfill the obligations of the Transfer Agreement, including the execution of any act and any required public or private document.
The Tribunal also rejected the Algamarcas’s Petition of Nullity based on lack of jurisdiction and also directed that the fees of the Arbitrators be recoverable from the Algamarcas, with the administrative and secretarial fees of the Arbitration to be assumed by both parties equally, and with each party paying its own legal fees.
The Tribunal ordered the Algamarcas, and any third party that could have acquired any rights from the Algamarcas to :
- execute the minute and public deed acknowledging full payment of the purchase price and releasing the mortgage lien created on the property securing payment of the purchase price;
- restore to Sulliden possession of the mining concessions named Pilacones 8 and Accumulation Algamarca 2, and any other mining concessions that were transferred to Sulliden under the Transfer Agreement;
- restore to Sulliden possession of the surface lands transferred to Sulliden under the Transfer Agreement;
- restore to Sulliden possession of the mining camp established on the Shahuindo Property; and
- abstain from carrying out any act that limits, hinders or impedes the right of Sulliden to exercise any mining activity, exploration or exploitation or other act allowed by law in relation to the mining concessions, surface lands, or any other part of the Shahuindo Property acquired under the terms of the Transfer Agreement.
Commenting on the Tribunal Decision, Jacques Trottier, President of Sulliden, said “Sulliden is very pleased to have finally received the Decision of the Tribunal in this long running Arbitration Process. The Decision clearly confirms Sulliden’s full entitlement to the Shahuindo Property. Sulliden now intends to take all steps necessary to obtain possession and occupation of the Shahuindo Property and to have the mining concessions and surface lands registered in Sulliden’s name.”
“We hope that the Algamarcas recognize and obey the Tribunal Decision and withdraw their objections to the Transfer and Registration. However, if necessary, Sulliden will take whatever legal action may be advised to ensure compliance with, and enforcement of, the Tribunal Decision.”
Sulliden Exploration Inc. is a mineral exploration company focused on the development of its 100% interest in the Shahuindogold-silver project located 25 km north of Alto Chicama and 70km south of Yanacocha in northern Peru. The resource stands at 1.5 million ounces of gold at an average grade of 0.85 g/t Au and 35.2 million ounces of silver at an average grade of 19.83 g/t Ag, for a total gold equivalent of 2.1 million ounces of gold at a current gold to silver ratio of 1:60. In addition, Sulliden has an option interest to acquire 66% of an adjacent 1,900 hectares known as the Vikingoconcessions which brings the Company’s land holdings in this exciting gold district to almost 10,000 hectares. In southern Peru, Sulliden, through a subsidiary, has entered into an option agreement to earn a 50% interest in the Torrine gold project with Aruntani SAC and affiliates.
For further information please contact:
Jacques Trottier, President
Tel: (514) 861-1953
e-mail: sulliden@colba.net
Mr. Jim Coleman, Chairman
Tel: (403) 267-8373
