Remember meForgot password?
    Log in with Twitter
Press Release

Infinito Gold Files to Annul the Tribunal Contencioso Administrativo Ruling

Canada NewsWire

Trading Symbol: TSX-V: IG

CALGARY, Jan. 18 /CNW/ - Infinito Gold Ltd. (the "Company") announces that on Tuesday, January 18, 2011, its wholly owned subsidiary in Costa Rica, Industrias Infinito S.A., ("IISA") filed a request for annulment ("Casación") with the Administrative Law Chamber of the Supreme Court of Costa Rica, ("SALA I") against the sentence imposed by the Tribunal Contencioso Administrativo ("TCA") on November 24, 2010, (the "Ruling"). In addition, several government agencies involved in the Crucitas project approval process have filed for Casación along with several individuals directly impacted by the Ruling.

The filing of the Casación seeks to overturn the Ruling which annulled the Exploitation Concession of the Company's Crucitas gold project.  In addition, the Ruling invalidated the original approval of the environmental impact study received in December of 2005 during the Abel Pacheco presidency, the amended environmental impact study received in February of 2008, and the Presidential Decree declaring the project to be in the national interest received in October of 2008. 

The Ruling also recommended that the office of the Attorney General investigate possible criminal action against former President Arias, former environment minister Dobles, several government officials, a former employee and a former consultant of the Company.  The Company strongly denies any allegation of wrongdoing throughout the project approval process in Costa Rica and will consider all legal options, in addition to the filing of the Casación, in defending itself and the interests of its investors and employees.

In the Casación the Company is seeking to overturn the Ruling rendered only two days following the completion of the TCA hearing in November.  The Company is also arguing that most of the matters addressed by the Ruling were already evaluated in considerable detail by the Constitutional Chamber of the Supreme Court ("SALA IV").  The SALA IV ruling was received in April of 2010, following an exhaustive process which took more than 18 months and included a site visit by the SALA IV judges and an oral presentation and questioning process called a Vista which lasted over three days.  The full written ruling of the SALA IV was received in July of 2010 and at 340 pages is considered one of the most detailed and extensive decisions in the history of the SALA IV. The SALA IV decision ruled that the challenges to the grant of permits allowing development of the Company's Crucitas gold project were effectively without merit.  The SALA IV also ruled that, following the establishment of a monitoring committee (or "Comima"), the project could proceed with Comima approval, a process that was well underway prior to the dissemination of the Ruling.

The Company is seeking to re-establish the security and value of its considerable and long term investments in Costa Rica and to reverse the negative impact that the Ruling has had with respect to the Company's share price and the inherent negative impact on its investors and employees. 

The apparent situation where a lower court ignores or discounts the ruling of a higher court, in this case the SALA IV, also has implications for the broader business and legal community in Costa Rica with respect to judicial and investment security for both the Company as well as current and potential investors in the country. 

While the Company has made the decision to file for Casación, as stated previously, the Company will continue to evaluate all legal options to defend itself as well as the interests of its investors and employees during the SALA I judicial process. 

Caution Regarding Forward-Looking Information and Statements

Certain statements in this press release address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements.  These factors include, among others, whether the negative impacts of the Ruling on the Company can be reversed by the Casación, that the Casación may be unsuccessful or that other legal options may be unavailable or unsuccessful at restoring the Company's rights or value. These statements are made as of the date of this release but the Company undertakes no obligation to update these statements or any related forward-looking information if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking information or statements.


John Morgan
President and CEO

" Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release."

Latest News
Top News