Superior Gold Inc. Commences Litigation Against Vango Mining Limited With Respect to Tenements Northeast of the Plutonic Gold Mine
TORONTO, November 8, 2018 – Superior Gold Inc. (“Superior Gold” or the “Company”) (TSXV: SGI) announced today that its wholly owned subsidiary, Billabong Gold Pty Ltd (“Billabong”) has commenced legal proceedings against Vango Mining Limited (ASX: VAN) (“Vango”) and its wholly owned subsidiary Dampier (Plutonic) Pty Ltd (“DPPL”) with respect to tenements to the northeast of and separate from its 100% owned Plutonic Gold mine property located 800 kilometres northeast of Perth.
Billabong’s claim arises out of an Ore Treatment Agreement (“OTA”) entered into on September 23, 2014 by Northern Star Resources Ltd (“Northern Star”), Vango and DPPL, which Northern Star assigned to Billabong in October 2016.
Billabong claims it held rights of first refusal under the OTA in respect to the tenements within Vango’s Plutonic Dome project in Western Australia (Tenements), and that these rights were breached with respect to certain of Vango’s and DPPL’s intended and actual transactions in 2016 and 2017.
Billabong is seeking remedies from the Supreme Court of Western Australia in respect to the alleged breaches.
Chris Bradbrook, President and CEO of Superior Gold stated: “It is disappointing that our efforts to resolve this dispute without litigation have been unsuccessful. Notwithstanding our claims, the infrastructure at our Plutonic Gold mine, which currently has excess mill capacity, potentially offers Vango’s shareholders the opportunity to develop any financially viable mine on the Tenements in the most expedient and cost effective manner.
It is important to note that the Tenements under dispute are entirely unrelated to our 100% owned Plutonic Gold operations, which include the Plutonic underground mine and the Hermes open pit mine.”
About Superior Gold
Superior Gold is a Canadian based gold producer that owns 100% of the Plutonic Gold operations located in Western Australia. The Plutonic Gold operations include the Plutonic Gold mine and central mill, the Hermes open pit gold mine and an interest in the Bryah Basin joint venture. Superior Gold is focused on expanding production at the Plutonic Gold operations and building an intermediate gold producer with superior returns for shareholders.
For further information, please contact:
Superior Gold Inc.
Brian Szeto, Vice President Communications and Strategy