SALA I Decision Delayed and Review of Strategic Options and Cost Cutting Initiative Underway
TSX-V: IG
CALGARY, Nov. 28, 2011 /CNW/ - Infinito Gold Ltd. (the 'Company') announces that the local media in Costa Rica is reporting that the head of the Administrative Law Chamber of the Supreme Court of Costa Rica ('SALA I') has indicated that the decision of the SALA I in respect of the request for annulment ('Casación') of the sentence imposed by the Tribunal Contencioso Administrativo ('TCA') on November 24, 2010, filed by the Company's wholly owned subsidiary in Costa Rica, Industrias Infinito S.A. ('IISA'), may be delayed which implies it may not be rendered within the 25 working day period that was originally indicated by the SALA I.
Construction of the Company's Crucitas gold mining project has been halted since October of 2008 and remains suspended even after the Constitutional Chamber of the Supreme Court of Costa Rica ('SALA IV') provided its ruling of April, 2010 that the substance of the legal challenges against the project were without merit. The complete ruling was received in August of 2010 and represents a decision by the highest court in the country after a review of the constitutional, technical, environmental and legal aspects of the project and the process for regulatory approval of the project in extensive detail. Nonetheless, an injunction put in place by the TCA has prevented construction from re-commencing at the site and there has been no significant construction activity on site for over three years.
After over three years of delay due to proceedings before the SALA IV, the TCA and the SALA I the Company has decided to take actions in Costa Rica to aggressively reduce costs by further reducing staff and suspending social programs and is reviewing all strategic options available and evaluating other legal options.
The Company is also working with its major shareholder to secure funding which will be used to finance operations during the review of strategic alternatives, but no agreement has been reached at this time.
Caution Regarding Forward-Looking Information and Statements
Certain statements in this press release 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 factors include, among others, whether Exploram Enterprises Ltd., the Company's major shareholder, will provide additional funding to the Company, whether the Company may be able to continue funding its court cases in respect of the Las Crucitas or the Las Cristinas projects, whether the Company may be able to obtain funds from any of the activities that may be identified during the review of strategic options, or at all, and whether the Casacion or the arbitration case may be successful. These statements are made as of the date of this release but the Company undertakes no obligation to update these statements or any related forward-looking information 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 and CEO
' 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 and accuracy of this release.'
Infinito Gold Ltd.
CONTACT: INFINITO GOLD LTD.
600, 1100 1stStreet S.E.
Calgary, Alberta T2G 1B1
Telephone: (403) 444-5191
