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Continental Materials reports settlement of Pikeview litigation

Continental Materials Corporation reported that on December 13 Continental Materials Corporation and its subsidiary, Castle Concrete Company, reached a settlement of a lawsuit filed by the company against its insurance carrier in November, 2010. The company will receive approximately $9.45M after paying contingent compensation to its outside legal counsel. The company had not previously recorded in its financial statements any receivable pertaining to this matter. The company estimates that the state and federal income taxes attributable to these settlement proceeds will be $3.2M. Castle Concrete has filed an application for a new mining permit for the Pikeview Quarry with the Colorado Division of Reclamation, Mining and Safety. The outcome of the permit process will likely have an impact on the future reclamation requirements at the Pikeview Quarry. A revised reclamation plan may require the company to increase its recorded reclamation liability. The amount of such increase, if any, is not currently determinable.