VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 14, 2017) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) announces it has reached a settlement with National EWP, Inc. ("National") to end the court proceedings involving its 70% indirectly owned subsidiary Mineral Ridge LLC ("MRG"), the operator of the Company's Mineral Ridge gold operation.
In its prior ruling, the Second Judicial District Court of Washoe County, Nevada issued a judgment awarding National US$2.3 million in its lawsuit against MRG. The Company and its legal advisors disagreed with both the Court's legal conclusions and its factual findings and began the appeals process. To prevent any collection activities during the pendency of the appeal, MRG was required to provide cash security to the court in the amount of the judgment. During the early stages of the appeal, Nevada court rules required both parties to attend a settlement conference with a court-appointed mediator to seek agreeable settlement terms. After negotiation with National, the Company determined that it was in its best interest to settle the case for an amount of US$1 million and end the costly litigation.
This settlement allows Scorpio Gold to avoid significant legal fees during a potentially lengthy appeals process and provides for return of $1.3 million of the $2.3 million cash security posted with the court. MRG can thereafter use the freed up funds to further advance its Nevada properties.
About Scorpio Gold
Scorpio Gold holds a 70% interest in the Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Elevon, LLC (30%). Mineral Ridge is currently in production as a conventional open pit mining and heap leach operation. The Mineral Ridge property is host to multiple gold-bearing structures, veins and lenses at exploration, development and production stages. Scorpio Gold also holds a 100% interest in the advanced exploration-stage Goldwedge property in Manhattan, Nevada, with a fully permitted underground mine and 400 ton per day mill facility. The Goldwedge mill facility has been placed on a care and maintenance basis and can be restarted immediately when needed.
