The Arbitrator, Justice Robert E. Rose (Ret.), ruled that The Scope and Technical Details of the Bankable Feasibility Study provided by Northern Vertex met industry standards and conforms to the Agreement. Patriot had asserted that the feasibility study as provided by Northern Vertex did not conform to the Agreement as it covered only patented claims and did not adequately address the unpatented claims or the surrounding area of interest.
Finally, the Arbitrator ruled that approximately $5.5 million in gold and silver produced and sold by Northern Vertex from its Pilot Leach Plant in conducting testing and analysis of the Moss Mine was the property of Northern Vertex and such revenues could be used to cover expenses and fund operations thereof. Patriot had claimed that while the provisions of the Agreement gave Northern Vertex the right to prospect, develop and explore, it did not give it the right to sell the gold and silver ore before completion of the earn in provisions of the Agreement.
While the Company strongly disagrees with, and is disappointed in, the rulings by the Arbitrator, it accepts the decisions rendered and intends to complete a Joint Venture Agreement with Northern Vertex and ultimately enter into commercial production at the Moss Mine Gold Project.
Disclaimer: This announcement may contain forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, limited access to operating capital, factors detailed in the accuracy of geological and geophysical results including drilling and assay reports; the ability to close the acquisition of mineral exploration properties, and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information is included in the company's filings with the Securities and Exchange Commission, and may be accessed through the SEC's web site at http://www.sec.gov.