Advice on notice from Westchester Resources Limited
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES/
ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE
PERTH, Western Australia, March 6, 2012 /PRNewswire/ - The Board of Ratel Group Limited ("Ratel", "the Company") (TSX Code: RTG) announces subsequent to Ratel's announcement on 3 November 2011 that the contract to acquire CAML Ghana Limited ("CAML Ghana") (the holder of the interest in the Obuasi Joint Venture) had been terminated, Westchester Resources Limited (the other party to the Obuasi Joint Venture) issued proceedings in the High Court of Ghana against a number of parties, including Ratel, which was served on 29 February 2012. Ratel understands that these proceedings deal with the same factual issues that are the subject of arbitration proceedings commenced in November 2011 by CAML Ghana Limited, an unrelated entity to Ratel, against Westchester Resources Limited in the London Court of International Arbitration and which are still underway; Ratel is not a party to those proceedings and understands that central to both proceedings is a dispute as to whether CAML Ghana held a legal interest in the Obuasi tenement, which Ratel is confident will be confirmed. The orders sought in the Ghanaian proceedings against Ratel are unsubstantiated and without foundation. The Board believes that the Company has no liability to Westchester in respect to any of the allegations made against it in the writ.
ABOUT RATEL GROUP LIMITED
Ratel is listed on the main board of the Toronto Stock Exchange and is a mining exploration company focused on developing gold and copper deposits in Africa.
The Company is earning a 51% interest in the Segilola Gold Project in Nigeria, the largest undeveloped gold resource identified in Nigeria and holds a 51% interest in the Mkushi Copper Project in Zambia. At the Segilola Gold Project, Ratel has identified a maiden NI 43-101 compliant indicated resource of 520,000 ounces of gold contained in 3,658,000 tonnes at a grade of 4.4g/t and an inferred resource of 97,600 ounces of gold contained in 790,200 tonnes at a grade of 3.8g/t from just the first pass 11,000m drill program.
Ratel has an experienced management team, and is further supported by CGA Mining Limited, a 19% shareholder in the Company. CGA is a member of both the S&P/TSX Global Gold and Global Mining Indices. Ratel will be focused on further developing its current resource interests and identifying new opportunities in Africa to both grow its reserve and resource base and enhance the Company's ability to move quickly to a producer.
NATIONAL INSTRUMENT 43-101 COMPLIANCE
Mr Mark Turner, BE Min (Hons), M.Aus.I.M.M. CP Man, is acting as the Qualified Person in compliance with NI 43-101 with respect to this announcement. He has prepared and or supervised the preparation of the scientific or technical information in this announcement and confirms compliance with NI43-101.
Mr. Alfred John Gillman of Odessa Resources Pty Ltd, an independent qualified person experienced in the style of mineralisation at the Segilola Gold Project, has completed the resource statement for the Segilola Project as referred to in this announcement, including verification of the sampling, analytical and test data underlying the estimate. Verification also included a site visit, database validation of historical drill results and a review of sampling and assaying protocols. The qualified person was satisfied with all of the protocols used during the drilling, sampling and in the Segilola resource estimate compilation and computation.
With regard to the Mkushi Copper Project, Matthew Nimmo of Snowdens is the qualified person and has verified the resource statement as disclosed in this announcement, including sampling, analytical and test data underlying the estimate. Verification of the data included numerous site visits, database validation of historical drill results and review of sampling and assaying protocols. The qualified person was satisfied with the verification process.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein, without limitation, exercise of the Company's option agreements, the plans of the Company and future development activities are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. 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. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties related to fluctuations in gold, copper and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainties relating to the completion of a bankable feasibility study; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need to meet certain conditions stipulated in the Segilola Joint Venture Agreement in order to maintain the Company's interest in the Segilola Gold Project; the need for cooperation of government agencies in the development of the Company's mineral projects; the need to obtain additional financing to develop the Company's mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for the Company's mineral projects; and other risks and uncertainties disclosed under the heading "Risk Factors" in Ratel's Annual Information Form for the year ended 30 June 2011 filed with the Canadian securities regulatory authorities on the SEDAR website at www.sedar.com.
SOURCE Ratel Group Limited