IMA loses last grab at Navidad (December 20, 2007)

Vancouver – The battle over the Navidad silver project is finally at an end. The Supreme Court of Canada has dismissed IMA Exploration‘s (IMR-V, IRM-X) leave to appeal the previous lower court decision, leaving the company with no further avenues of recourse in its attempt to reclaim the giant silver deposit.

Aquiline Resources (AQI-T) is now officially the sole owner of the project, though the company has controlled Navidad since October 2006. With the last of the legal battles settled, Aquiline has to reimburse IMA for what it spent exploring the silver project. By December 31, 2007, Aquiline owes IMA $7.5 million plus interest. And by January 22, 2008, the legal winner has to hand over a further $11 million to IMA, minus Aquiline’s legal costs.

With funds on hand plus the cash to be received from Aquiline, IMA will have $26 million in its treasury that it intends to spend on acquisitions, as the company does not currently hold a project. President Joseph Grosso says IMA has been actively reviewing numerous projects and opportunities over the past six months.

By way of background: IMA staked the Navidad property, in southern Chebut province, Argentina, in late 2000. At the time, IMA and Aquiline were in talks with Newmont Mining (NMC-T, NEM-N) about the sale of the nearby Calcatreu project. As part of the sale negotiations, IMA and Aquiline were both given stream sediment sample data for the surrounding area controlled by confidentiality agreements.

Aquiline bought Calcatreu in 2002. On examining the sample data a short while later, the company decided to stake the area around what is now Navidad but found IMA already there. Aquiline sued IMA in March 2004, charging IMA staked Navidad based on confidential data.

In July 2006, a B.C. Supreme Court judge sided with Aquiline and ordered IMA to hand the project over to its competitor. IMA appealed the decision, but lost that appeal earlier this year. IMA’s application to appeal the decision to the Supreme Court of Canada was its last avenue of recourse.

An updated resource estimate for Navidad, out in mid-November, showed that the project has grown into one of the largest silver deposits in the world.

Navidad hosts 127.7 million tonnes grading 110 grams silver per tonne and 1.06% lead in the measured and indicated categories, as well as inferred resources of 49 million tonnes grading 97 grams silver and 0.5% lead. That adds up to 453 million measured and indicated oz. silver plus 153 million inferred oz. of the precious metal, and 3 billion lbs. measured and indicated lead, plus 546 million inferred lbs. lead.

On the news, Aquiline gained 17 or 2% to close at $8.88. Absolut Resources, which Aquiline is in the process of acquiring, also gained 17, to close at 85. IMA lost just 4, closing at 41.5.