BRISBANE, AUSTRALIA--(Marketwire - Dec 11, 2012) - Intrepid Mines Limited (IAU.TO)(IAU.AX) (the "Company") advises that the first writ of summon together with a statement of claim in respect of proceedings instituted in Indonesia by IndoAust Mining Limited, IndoAust Mining Pty Limited and Paul Michael Willis against the Company, has now finally been served at the Company''s Jakarta representative office.
The lawsuit has also been instituted against the Company''s wholly-owned subsidiary, Emperor Mines Pty Limited ("Emperor"), two Company executives and the Company''s Indonesian joint venture partners, PT Indo Multi Niaga ("PT IMN"), Andreas Reza Nazaruddin ("Reza") and Maya Miranda Ambarsari ("Maya") (refer news release of 26 October 2012 in relation to media rumours). The lawsuit has been instituted in the South Jakarta District Court in Indonesia.
The plaintiffs are seeking compensation in the amount of A$2.5 million for alleged expenditure incurred in respect of the Tujuh Bukit project, an additional A$250 million for unspecified and unsubstantiated damages, and an order setting aside unspecified agreements allegedly deriving from the expiry and/or termination of the various agreements with the plaintiffs that give rights to Emperor over Tujuh Bukit.
Intrepid has met all of its obligations under the Alliance Agreement entered into with PT IMN, Maya and Reza, including funding beyond the original US$50 million expenditure commitment. Expenditure on the Tujuh Bukit project up to July 2012, when PT IMN suspended operations without reference to the Company, was approximately US$105 million.
The Company believes the action brought is totally without foundation and suffers from material legal deficiencies and will vigorously defend the action.
This announcement contains certain forward-looking statements, relating to, but not limited to Intrepid''s expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as ''anticipate'', ''believe'', ''expect'', ''goal'', ''plan'', ''intend'', ''estimate'', ''may'' and ''will'' or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future outcomes, or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects, and timing of commencement of operations and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied.
Shareholders and potential investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Intrepid undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
|Ian McMaster (Chairman)|
|Colin G. Jackson (Deputy Chairman)|
|Brad A. Gordon (Managing Director)|
|Laurence W. Curtis (Non-executive Director)|
|Robert J. McDonald (Non-executive Director)|
|Alan Roberts (Non-executive Director)|
|Adrianto Machribie (Non-executive Director)|
|Nyla Bacon (Company Secretary)|
|Stock Exchange Listing|
|ASX and TSX symbol: IAU|
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|4,645,104 unlisted share rights|
|51,208,032 unlisted restricted performance rights|
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