Trading Symbol: TSXV: IG
CALGARY,
April 4, 2013 /CNW/ - Infinito Gold
Ltd. ("Infinito" or the "Company") announces that on April 4, 2013 it has served notice to the
Government of the Republic of Costa
Rica (the "Republic") that Infinito considers the Republic
to be in breach of the provisions of the Agreement Between the
Government of Canada and the
Government of the Republic of Costa
Rica for the Promotion and Protection of Investments (the
"Bilateral Investment Treaty"), in respect of the Republic's
treatment of Infinito's investment in its subsidiary Industrias
Infinito S.A. ("IISA") and the Las Crucitas mining concession held
by IISA.
Infinito has served notice to the Republic in
accordance with Article XII of the Bilateral Investment Treaty,
however, Infinito has invited the Republic to settle this dispute
amicably pursuant to Article XII(1) of the Bilateral Investment
Treaty. It is important to note that serving this
notification to the Republic does not constitute the commencement
of formal arbitration proceedings, however, if the dispute cannot
be settled, Infinito is prepared to take all necessary steps to
pursue its arbitral remedies under the Bilateral Investment
Treaty.
By way of background IISA completed all the
environmental, social and technical studies and obtained all
approvals required under Costa Rican law to develop and operate the
Las Crucitas Project. In February
2008, the Secreteria Tecnica Nacional Ambiental ("SETENA")
approved a modified Environmental Impact Study while in
May 2008, the Ministerio de Ambiente
y Energia confirmed Industrias Infinito's Exploitation
Concession. On October 17,
2008, then President Oscar
Arias issued a Presidential Decree declaring the Crucitas
Project to be in the national interest, allowing a change of land
use permit to be obtained and for site clearing to commence.
On April 16, 2010,
in response to a claim brought by a public interest group that had
halted clearing and mine construction activities for 18 months, the
Constitutional Chamber of the Supreme Court ("SALA IV") ruled that
all of the objections that had been raised against the project were
without merit (with one exception that was resolved by the time the
legal process was completed). The Constitutional Chamber's
decision, which had involved a project site inspection in addition
to oral hearings, included 340 pages of reasons released in
July 9, 2010, which addresses all
constitutional, legal and environmental/technical issues in
depth.
Notwithstanding this complete and definitive
ruling from the SALA IV allowing the Crucitas Project to proceed,
IISA's concession to develop Las Crucitas has been annulled by a
decision made initially on November 24,
2010, by a lower Costa Rican court -- the Tribunal
Contencioso Administrativo ("Tribunal") - and affirmed on
November 30, 2011 by the
Administrative Chamber of the Supreme Court ("SALA I").
In its decision, the SALA I reached a conclusion
that was the opposite of the conclusion the SALA IV had reached
only a year and a half earlier, effectively upholding the
Tribunal's decision to annul IISA's concession and invalidate its
environmental approvals.
On November 11,
2010, IISA formally requested that the SALA IV enforce its
decision in order to prevent any conflict between the SALA IV's
decision affirming the validity IISA's permits and approvals and
any inconsistent decision from the Tribunal or the SALA I. To
date, the SALA IV has taken no action to respond to this
request. As a result, Infinito and IISA find themselves in a
legal vacuum, subject to two contradictory decisions with no basis
under the Costa Rican legal system for resolving this conflict.
Caution Regarding Forward-Looking Information
and Statements
Certain statements in this press release,
including the Company's evaluation of its legal rights and
strategic options, address future events and conditions and, as
such, involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
statements. These statements are made as of the date of this
release but Company undertakes no obligation to update these
forward-looking information or statements if circumstances or
management's estimates or opinions should change. The reader is
cautioned not to place undue reliance on forward-looking
information or statements.
INFINITO GOLD LTD.
John
Morgan
President
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Infinito Gold Ltd.