Aug 31st, 2012 Copyright (c) 2012 Thenewswire.ca - All rights reserved.
(via Thenewswire.ca)
August 31, 2012, Toronto, Ontario - Western Troy Capital Resources (TSX Venture: WRY, US-OTC: WTCRF) (Western Troy or the Company) yesterday filed a Notice of Action in Ontario's Superior Court of Justice (Toronto) against GENIVAR for $3.0 million and certain of their professional managers for $2.2 million as a result of professional negligence in work they performed on a feasibility study for Western Troy's MacLeod Lake Copper/Molybdenum Project. The full text of the Notice of Action will be available shortly on Western Troy's Website (www.westerntroy.com).
In April of this year, Western Troy announced there were several outstanding technical issues to be resolved regarding the MacLeod Lake feasibility study before Western Troy could release any results. In early April, Western Troy had received a preliminary report indicating a substantial reduction in copper, molybdenum, gold, and silver grades, as compared to the Preliminary Economic Evaluation performed in early 2008.
Western Troy worked with the firms that provided the differing reports to determine the cause of the variance. This collaboration determined that, while optimization would result in slight improvements in grades, the April 2012 report showing the substantial reduction in grades appears to be correct. Upon further review, it was determined that the April 2012 results included data from drilling that was performed during the summer of 2008. The inclusion of the 2008 drilling data, along with other factors, has resulted in the overall economics of the McLeod Lake project falling from attractive, to marginal.
Western Troy believes that the resource model should have been updated with the 2008 drilling data when that data first became available. Western Troy has filed an action in Ontario Superior Court against GENIVAR Inc. and certain of their professional managers seeking recovery of the approximately $3 million the company spent on the project after it should have been, but was not informed of the new economic realities.
Western Troy's CEO, Rex Loesby, commented "Western Troy will now concentrate its activities on its other attractive prospects in Quebec, as well as seek out new prospects of merit. We have a strong cash position but our market capitalization and stock price are at very low levels. Other exploration companies active in Quebec with comparable mineral property holdings, have, on average, much higher market capitalizations. We will be working very hard to tell this story to the investment community so our shareholders may benefit. We believe Western Troy has a very bright future."
About Western Troy: Western Troy's shares trade on the TSX Venture Exchange under the symbol WRY. Western Troy has 33,589,970 shares outstanding. More information on Western Troy can be found on its Website at www.westerntroy.com.
Forward Looking Statements: Statements in this release that are forward-looking reflect the Company's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's periodic filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on the information currently available; however actual results and events may vary significantly. The Company does not assume the obligation to update any forward-looking statement.
Neither 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 or accuracy of this release.
Contact Information:
Western Troy Capital Resources
Rex E. Loesby, CEO
Tel: 416-929-3268
Email: Loesby@westerntroy.com
Copyright (c) 2012 Thenewswire.ca - All rights reserved.
