VANCOUVER, BRITISH COLUMBIA--(Marketwire -07/20/12)- THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Macarthur Minerals Limited (MMS.TO)(MMSDF) (the Company or Macarthur) wishes to advise that the Company has been served with proceedings in the Supreme Court of Queensland commenced by LPD Holdings (Aust) Pty Ltd (LPD) and Mayson Associates Limited (Mayson) (Proceedings). LPD is, and Mayson was, a shareholder in the Company. Both LPD and Mayson are controlled by Hong Kong residents.
The Company is named as a respondent. The other respondents to the Proceedings are some directors and officers of the Company and Jaldale Pty Ltd.
LPD and Mayson appear to allege a wide range of breaches of various provisions of the Australian Corporations Act 2001 and seek a wide range of relief against the Company and other respondents under provisions of the Australian Corporations Act 2001.
LPD previously commenced proceedings in the Supreme Court of Queensland on 16 July 2010 for inspection of books and records of the Company and its subsidiary Macarthur Iron Ore Pty Ltd (previously named Internickel Australia Pty Ltd). Those proceedings were settled by mutual agreement on 18 May 2011.
The Company considers the Proceedings are without merit and will vigorously defend the Proceedings. Legal advisors are being appointed by the Company in respect of the Proceedings.
On behalf of the Board of Directors,
MACARTHUR MINERALS LIMITED
Alan Phillips, President, Chairman & CEO
Macarthur Minerals Limited is an Australian based resource development company currently focused on developing its Ularring Hematite Project, located in the Yilgarn iron ore district in Western Australia. The Ularring Hematite Project is located 110 km from rail infrastructure with a direct connection to the iron ore exporting Port of Esperance, Western Australia.
The Ularring Hematite Project has an indicated Mineral Resource of 54.46 Mt at 47.2% Fe and an inferred Mineral Resource of 25.99 Mt at 45.4% Fe (press release dated June 14, 2012; NI 43-101 Technical Report dated June 29, 2012). In addition, Macarthur's Moonshine Magnetite Project has an inferred Mineral Resource of 1.3 Bt at 30.1% Fe (press release dated December 15, 2010; NI 43-101 Technical Report dated March 25, 2011).
Positive Preliminary Economic Assessments were released to the market on the Ularring Hematite Project in November 2011 (press release dated November 21, 2011; Technical Report dated January 4, 2012) and the Moonshine Magnetite Project in February 2011 (press release dated February 7, 2011, Technical Report dated March 25, 2011).
Caution Regarding Forward-Looking Statements
Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, "forward-looking statements") within the meaning of applicable securities laws. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things, the reliability of information prepared and/or published by third parties that are referenced in this press release or was otherwise relied upon by the Company in preparing this press release. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unforeseen technology changes that results in a reduction in iron or magnetite demand or substitution by other metals or materials, the discovery of new large low cost deposits of iron magnetite and the general level of global economic activity. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.