Jaguar Financial Inc.

Jaguar Financial Inc.

October 25, 2007 12:00 ET

Jaguar Financial Settles Civil Action and Forms Joint Venture

TORONTO, ONTARIO--(Marketwire - Oct. 25, 2007) - Jaguar Financial Inc. ("Jaguar") (TSX:JFI) has settled a civil action by Process Research Ortech Inc. ("Ortech") which had alleged $21 million in damages against Jaguar relating to the development of Jaguar's patented sulphide leaching technology ("Technology").

Vic Alboini, Chairman and Chief Executive Officer, stated: "The Ortech civil action was commenced prior to the change in effective control of Jaguar in December 2006 when Jaguar was previously engaged in the mining business. We believe that this is the last outstanding matter in Jaguar's previous business."

Under the settlement, which involved a small cash payment to Ortech, Jaguar and Ortech have formed a joint venture as equal co-owners of the Technology. Ortech will manage the business of the joint venture for the purpose of commercializing the Technology. Jaguar is not required to fund any expenses of the joint venture and has no intention to do so in order that Jaguar can focus solely on its merchant banking business.

Any gross income received by the joint venture will be used to (1) repay any advances made by Ortech to fund the expenses of the joint venture, and (2) any remaining gross income received will be distributed as follows:

Total Gross Income
Received by Sulphide Ortech Jaguar
Initial $125,000 100% Nil
Next $1,000,000 75% 25%
After initial $1,250,000 50% 50%

Mr. Alboini commented: "We are pleased to have settled the historical civil proceeding and turned the relationship with Ortech into a positive spirit of cooperation to potentially commercialize the Technology for the benefit of Jaguar and Ortech."

About Jaguar

Jaguar is a Canadian merchant bank that invests in undervalued small capitalization companies in a variety of industry sectors.

This news release may contain certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under Jaguar's control which may cause actual results, performances or achievements of Jaguar to be materially different from those implied by such forward looking statements.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Jaguar Financial Inc.
    Vic Alboini
    Chairman and Chief Executive Officer
    (416) 644-8110