posted on
Oct 15, 2008 09:59AM
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Message: Re: News
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It looks like they're fighting the tactics Fresnillo has been employing to possibly grab MAG on the cheap:
A statement released by Fresnillo is contradictory to facts, and are pointed out in the release:
- "The Saucito and Jarillias veins will be exploited first followed by the Valdecanas Vein.....The conceptual mine plan includes indicated and inferred resources and the resources include 100 % of the Valdecanas resources (of which Fresnillo owns 56%)". (i)
however:
"6) Fresnillo has unilaterally initiated an excavation to the east of the Juanicipio Property boundarywhich appears to be headed directly toward the Valdecanas Vein on the Juanicipio Property."
Hardly what you would do if you were going to exploit the other veins first, is it?
Also it appears that Fresnillo may be violating their agreements with MAG:
"The format and schedule for production and the conceptual mine plan described in Fresnillo's prospectus were not provided to, settled with, or approved by MAG. In fact, no development plans of any nature for the Valdecanas Vein have been the subject of a joint venture budget, bankable feasibility study or production decision as required by the shareholders agreement between MAG and Fresnillo. The shareholders agreement requires approval, by a 60% vote, of any major budget, any feasibility study and any production decision for the Juanicipio Property. MAG holds 44% of the voting shares of Minera Juanicipio S.A. de C.V., the joint venture company holding the Juanicipio Property."
Looks like the fight is on. It's about time.
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