SOURCE: Osprey Gold Corporation

July 28, 2006 13:26 ET

Osprey Gold Corporation Announces Legal Proceedings Dismissed

RENO, NV -- (MARKET WIRE) -- July 28, 2006 -- Osprey Gold Corp. ("Osprey" or the "Company") (PINKSHEETS: OSGL) announced that the action initiated by Gordon Leliever, Betty North, Douglas Budden and Boardwalk Creations ("Plaintiffs" or "Leliever Group") against Counterclaimants Georges Benarroch, Linda Kent, Jean-Jacques Treyvaud, and Related parties ("Defendants" or "Benarroch Group") was dismissed by the United States District Court, District of Nevada on July 26th, 2006 pursuant to the Settlement Agreement and Mutual Release between the parties executed on July 17th, 2006 (the "Settlement").

The Settlement calls for control of Osprey to remain with the Benarroch Group. In addition, part of the Leliever Group is required to surrender all of its shares of Osprey, totaling 61,150,000 shares of which 3,100,000 shares were owned by Gordon Leliever and 58,050,000 shares were owned by Boardwalk Creations Ltd. Furthermore, on or before August 16, 2006, the Leliever Group is required to satisfy all of the outstanding liabilities of Osprey totaling, but not limited to, approximately US $242,000 and must make a cash payment of US $1.5 million to Osprey. Upon evidence of payment of same, the assets of Osprey will be transferred to the Leliever Group. However, failure by the Leliever Group to make the payments before August 16, 2006 will entitle Osprey to retain the assets with no possibility of appeal by the Leliever Group.

Further, the Plaintiffs ("Leliever Group") were found in contempt by the United States District Court, District of Nevada. Excerpts from the Minutes of Court, dated June 15th, 2006 state: "The Court finds by clear and convincing evidence Mr. Leliever has procured the absence of the core logs and samples. The Court finds a failure to fully account has been demonstrated. The Court finds the Court Order has been violated. The Court further finds the items are critical to the corporation and are assets. The absence of the assets caused severe prejudice." Subsequent to the Court findings, a Settlement Agreement and Mutual Release was signed on July 17th, 2006.

Osprey Gold Corp. has acquired in Ontario advanced exploration-stage properties with near-term production potential and future growth through exploration discoveries.

This press release includes statements which may constitute "forward-looking statements." These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. These factors include, without limitation, future trends in mining prices, the availability of capital for development in the mining sector, competitive factors and other risks detailed in the Company's periodic filings with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Osprey Gold Corp.
    Linda Kent
    (416) 884 8807