October 3, 2008
Precious Metal Capital Corp. – Action Against International Consolidated Minerals Inc. (AIM: ICMI) and Pending Mareva Injunction Motion
TORONTO, Oct. 3 /PRNewswire/ -- Precious Metal Capital Corp. ("PMCC") announces that it is pursuing its claims against International Consolidated Minerals Inc. ("ICMI") (AIM: ICMI), International Consolidated Minerals Ltd. ("ICM Limited"), Gregory Charles Smith, Gregory Jack Peebles ("Peebles"), Haviland International Resources Inc. Limited ("HIRI") and others in the Ontario Superior Court of Justice (Commercial List File # 07-CL-7224) (the "Ontario Action"). The defendants' motion to stay the Ontario Action was dismissed in April 2008, and their appeal from this decision to the Ontario Court of Appeal was dismissed by reasons released August 7, 2008.
On September 12, 2008 PMCC served on the defendants notice of its motion in the Ontario Action for a mareva injunction - an interim preservation order that, if granted, would preclude ICMI, until the conclusion of the Ontario Action, from taking certain steps disclosed in ICMI's 2007 audited financial statements which PMCC alleges would dissipate ICMI's assets improperly and to PMCC's prejudice. The requested interim injunction, if granted, would, among other things, preclude ICMI from: selling or encumbering the Pachapaqui Mine or paying out monies to ICMI shareholders pursuant to alleged "Redemption Rights" held by these shareholders. PMCC has also sought a preservation order requiring funds held on account of intended "Redemption Rights" to be paid into court to the credit of the Ontario Action. A hearing date for the mareva injunction motion has not yet been set by the court.
In the Ontario Action, PMCC claims, among other things, that it entered into an agency agreement in writing with the defendant, Peebles, whereby it retained Peebles to assist PMCC to raise financing to acquire the Pachapaqui Mine. The claim alleges that in breach of fiduciary duties and duties of confidence owed to PMCC, Peebles acquired the mine for himself, through the defendant, HIRI, and then sold the mine to ICM Limited. In September 2007, ICMI acquired ICM Limited in a transaction valued at $US240 million. PMCC is seeking a declaration that ICMI holds title to the Pachapaqui Mine and the SanÃÆÃ“Ã“ LuisÃÆÃ“Ã“ Mine in trust for PMCC, or in the alternative US$200 million in damages.
The allegations in the Ontario Action and as set out in this news release have not been proved in Court. The Ontario Action continues.
Precious Metal Capital Corp.
CONTACT: Precious Metal Capital Corp., Gary Sugar, C.E.O., T: (416)640-0500, [email protected]