Minera IRL Limited

Minera IRL Limited

October 04, 2017 08:00 ET

Minera IRL provides arbitration update and reports legal proceedings against certain officers of COFIDE

LIMA, PERU--(Marketwired - Oct. 4, 2017) - Minera IRL Limited ("Minera IRL" or "the Company") (BVLAC:MIRL)(CSE:MIRL)(CSE:MIRL.CN)(CNSX:MIRL) reports that the Superior Council of Arbitration of the Chamber of Commerce of Lima ("CCL") has rejected the arguments submitted by Corporación Financiera de Desarrollo S.A. ("COFIDE") in opposition to beginning the Arbitration requested in June, 2017 by the Company's subsidiary company, Minera IRL S.A. The Council has admitted all of Minera IRL claims despite COFIDE's objections, and decided that the Arbitration should continue. The formal announcement of the Arbitration Panel is expected in the coming days.

Minera IRL has become aware of irregularities at COFIDE that appear to be preventing COFIDE from honoring its commitments under the Mandate Contract to structure the US$240m financing package for the development of the Company's Ollachea gold project. As a result, the Company has filed, before the authorities, a criminal complaint of corruption against certain officers of COFIDE and third parties directly involved with the alleged events. MIRL has taken this strong step in order to protect the assets of the Company and all of its stakeholders.

In addition, the Company understands that COFIDE has filed a lawsuit against some of its own former officers, alleging violations of internal procedures and, without any apparent foundation, COFIDE has named the Company as an additional defendant. It appears that, rather than trying to find a joint solution to the existing dispute, COFIDE would prefer to harm the Company's good name and commercial reputation.

Minera IRL's Executive Chairman, Gerardo Perez, stated that "We are pleased with the CCL Superior Council of Arbitration decision rejecting COFIDE's opposition and ordering continuation of the arbitration. We intend to provide all necessary evidence during the course of the arbitration process in order for the arbitrators to find in our favor. Likewise, we reject the complaint and abusive attitude of certain COFIDE officers who appear intent on destroying our Company's reputation and commercial viability through a media campaign that threatens our ability to access possible means of financing."

The Arbitration was requested by the Company last June. COFIDE submitted its opposition by the end of July. In August, the parties were called by the Superior Council of Arbitration of the Chamber of Commerce of Lima in order to present their positions regarding the continuation of the procedure. In September, by means of Resolution No. 0234-2017-CCL, the Council decided that "the Arbitration shall continue with the participation of Minera IRL S.A. and COFIDE regarding all the claims previously submitted by Minera IRL, so that the Arbitration Panel to be constituted can decide on any objection to its competence".

Following said resolution, the final composition of the Arbitration Panel is expected to be announced and constituted in the near future.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this news release.

Contact Information

  • Minera IRL Limited
    Gerardo Perez
    +51 1 418 - 1230

    Diego Benavides
    Director and CEO
    +51 1 418 - 1230

    Carlos Ruiz de Castilla
    Chief Financial Officer
    +1 778 387 5434