Century disagrees with Sulliden’s legal interpretation

Century Mining (CMM-V) has labeled a Sulliden Exploration (SUE-T) press release on the Shahuindo court battle a misrepresentation of fact, but Sulliden is standing by its words.

Its been a long-fought war for Sulliden the company bought the Shahuindo gold-silver property in 2002 from Compania Minera Algamarca S.A., but when an outside party bought Algamarca soon after, the company launched a suit declaring the contract for the property transfer was invalid.

Earlier this month Century purchased Algamarca and three other companies that together claim to own Shahuindo. As a part of the deal, Algamarca will continue to head up the litigation, but naturally, Century is keeping an eye on the proceedings.

The press release, issued today, was headlined: Algamarca legal actions dismissed Supreme Court upholds Sulliden appeal.

The release states that the Supreme Court of Peru has upheld Sulliden’s appeal against an order previously granted to Algamarca by a lower court.

Sullidens president and CEO, John Kearney, doesnt see a problem with the press release.

Kearney says that Sulliden regularly informs the public of the latest proceedings. On May 25, Sulliden was informed that the Supreme Court of Peru would allow Sullidens appeal, first directing the Superior Court of Cajamarca, a lower court, to reconsider the action taking into consideration all of the arguments and new facts presented by Sulliden.

Dianne Prupas, chief legal counsel for Century, says the release suggests that the Supreme Court made a decision on the merit of the case, while it had merely said there were certain areas that need to be heard at a lower level before it can hear the case.

Margaret Kent, president and CEO of Century, says her company will refute Sullidens press release.

The wording is misrepresenting of the facts, Kent says. Its a total misrepresentation to drive our stock down and drive theirs up.

Sulliden shares rose 4% or 2 in Toronto today to 52 on a trading volume of 498,000. Century shares were down almost 7% or 6 to 85 on about 170,000 shares.

Prupas says nothing has been ruled in Sullidens favour and that the ruling was procedural.

Kearney says the ruling was in favour of Sulliden.

A Supreme Court decision is significant even if its procedural, Kearney says.

Kearney pointed out that the main case was decided last July when Sulliden the court declared Sulliden had fully met the terms and obligations of a 2002 transfer agreement with Algamarca.