Ruby Creek's Lawsuit Against Handeni
NEW YORK, March 1, 2012 /PRNewswire/ -- Ruby Creek Resources, Inc.
, a gold exploration and mining company with operations in Tanzania, commenced a lawsuit against Handeni Gold Inc. in Supreme Court, State of New York on February 8, 2012.The lawsuit addresses Handeni's undisclosed and fraudulent re-sale of all or part of the Mkuvia properties to Guizhou Geology and Mineral Resources Development Company Limited, Di Ying (Tianjin) Mining Technology Development Company Limited, Zhongsham Jin Tai Real Estate Development Company Limited. The sales occurred between March 2010 and October 2010, damaging Ruby Creek's business. These properties were originally conveyed to Ruby Creek by Handeni in 2009 and 2010 through a series of agreements dated November 7, 2009, May 19, 2010, March 7, 2010 and May 24, 2010 which are fully disclosed in Ruby Creek's SEC filings.
In 2011, when Ruby Creek discovered the 2010 conveyance and transfers, Handeni offered to compensate Ruby Creek for Handeni's breaches of the parties' agreements. Handeni also agreed to waive the payments due to Handeni for the Mkuvia property until an agreement was reached. Ruby Creek confirmed the conveyances by Handeni through Tanzanian Mining Ministry Title Searches in September 2011. Despite this, and despite notice to Handeni's new management and Board, no settlement has been reached with Handeni.
In response to Ruby Creek's lawsuit, Handeni claims to have filed a lawsuit in British Columbia on February 23, 2012, seeking the payments which it waived with respect to the property rights it wrongfully conveyed. Ruby Creek believes Handeni's claims are without merit and will both vigorously prosecute its lawsuit and seek dismissal of the British Columbia lawsuit.
Ruby Creek does not anticipate that the Handeni litigation will affect Ruby Creek operations. The wrongfully conveyed property represents only 4 of Ruby Creek's 15 prospecting licenses and does not encompass Ruby Creek's existing mining license.
About Ruby Creek Resources, Inc.
Ruby Creek Resources, Inc. (www.rubycreekresources.com) is a gold exploration and mining company. Ruby Creek operates in Tanzania through its subsidiaries, Ruby Creek Gold (Tanzania) Limited and Ruby Creek Resources (Tanzania) Limited. Ruby Creek is the operator of the Tanzania Gold Plateau Project, establishing operations and infrastructure, along with the permitting process in support of the full development and commencement of gold mining operations on the project.
Forward-Looking Statements
This news release may include certain forward-looking statements. All statements, other than statements of historical fact, included in this release are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. This notice expressly qualifies all forward-looking statements in this release. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessary estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors, which may be identified, from time to time in the Company's public announcements.
Ruby Creek Resources, Inc.
CONTACT: CONTACT: Toby Hansen, Corporate Communications, +1-212-679-5711
ext 310, thansen@rubycreekresources.com
