New Cantech Ventures Inc.
TSX VENTURE : NCV
FRANKFURT : C7X

New Cantech Ventures Inc.

October 10, 2007 14:39 ET

New Cantech Ventures Inc.: Settlement of Legal Proceedings Regarding Reed Lake Mineral Property in Manitoba

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 10, 2007) - New Cantech Ventures Inc. ("New Cantech") (TSX VENTURE:NCV)(FRANKFURT:C7X), announces that it has settled legal proceedings wherein New Cantech had claimed that it was the beneficial owner of Manitoba Mineral Exploration Licence 331A which was recorded on September 26, 2007 in the name of Dalton Dupasquier, the past president of New Cantech. The legal proceedings were filed by New Cantech against Dalton Dupasquier on October 5, 2007 in Vancouver, British Columbia, Canada and also claimed damages for breach of a written Consulting Agreement dated August 28, 2007 between New Cantech and Dalton Dupasquier which agreement was entered into at the time that Mr. Dupasquier ceased being the President, CEO and a Director of New Cantech. The legal proceedings against Mr. Dupasquier claimed that under the Consulting Agreement, Mr. Dupasquier was required to assess new opportunities for New Cantech, among other things. The legal claim did not relate in any way to New Cantech's existing Lucky Ship Molybdenum project or to any other property currently held by New Cantech.

New Cantech is pleased to announce that after intensive settlement negotiations this legal claim has been settled. Mr. Dupasquier has agreed to hold one-half of Mineral Exploration Licence 331A (and any other properties Mr. Dupasquier acquired prior to the termination of his Consulting Agreement) in trust for New Cantech and, as a result, New Cantech is to obtain one-half of any benefit Mr. Dupasquier will derive from any disposition of the Mineral Exploration Licence 331A and any other properties Mr. Dupasquier acquired prior to the termination of his Consulting Agreement. New Cantech understands that Mr. Dupasquier had entered into an agreement with at least one third-party for the sale of one-half of Mineral Exploration Licence 331A (for the price of $450,000 cash and a 2% NSR with a buy-back of one-half of one percentage point of NSR for $500,000.00) and a further agreement may be entered into with another party for the other one-half of Mineral Exploration Licence 331A. Accordingly, if the first agreement proceeds, New Cantech will be entitled to one-half of the $450,000 sale price and one-half of the 2% royalty which are set out in that agreement and, in the event that another agreement is entered into for the sale of the other half of the property, then New Cantech will be entitled to one-half of the sale proceeds set out in that other agreement. Each of New Cantech and Mr. Dupasquier will bear their own costs of the legal proceedings.

The previous Consulting Agreement dated August 28, 2007 between New Cantech and Mr. Dalton Dupasquier is terminated immediately and Mr. Dupasquier's membership on the Advisory Council of New Cantech is terminated immediately.

Manitoba Mineral Exploration License 331A is contiguous to Mineral Exploration Licence 268A referred to in the October 4, 2007 news release issued by VMS Ventures Inc. (TSXV: VMS) in which VMS stated that VMS was releasing "assay results (weighted average) from drill hole RD 07-02 on its new discovery on its Reed Lake project, near Snow Lake, Manitoba" which highlighted "high grade copper rich intervals" (See - www.vmsventures.com).

About New Cantech

New Cantech is a TSX Venture listed mineral exploration and development company focusing on the development of its Lucky Ship Molybdenum Property in west central British Columbia and the advancement of its other mineral exploration properties, most of which are located in British Columbia and all of which are located within Canada.

ON BEHALF OF THE BOARD OF DIRECTORS

James Jacuta

NEW CANTECH VENTURES INC.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein.

Contact Information

  • New Cantech Ventures Inc.
    James Jacuta
    President and CEO
    (604) 638-0699
    Website: www.newcantech.com