Vancouver, B.C. – December 27, 2013 – Highbank Resources Ltd. (the "Company") (TSX Venture: HBK). On December 8, 2009, the Company entered into an option agreement (the "Agreement") with MOAG Copper Gold Resources Inc. (C.MOG) to acquire a 50% interest in the Highland Valley Property, located in British Columbia. The terms of the Agreement included the issuance of a total of 20,000,000 escrow common shares, staged payments and exploration expenditures in stages within three years of Exchange and shareholder approval. In compliance with the Agreement, Highbank had made payments of $50,000, completed exploration expenditures of over $576,000 and released in stages 6 million escrowed common shares.
The Board of Highbank, after carefully considering many factors, (including but not limited to: the unsuccessful MOAG operated drilling program, the extraordinary delays of the logging/sampling of the drill cores, the inordinate delay in the issuing of the drill results, and falling copper prices) resolved on December 6th, 2012, to terminate the Agreement to acquire the property and cancel the release of the remaining 14,000,000 escrow common shares, with regulatory approval.
Upon complete review and due consideration of this matter the TSX Venture Exchange on January 4, 2013 advised Highbank that since the property had been abandoned or discontinued, section 2.3(1) of the Agreement would prevail regardless of the status of the underlying option terms. On January 7, 2013 the Company delivered a Direction to Return Shares to Treasury Order to its transfer agent to cancel and return to treasury the 14,000,000 escrow common shares issued to MOAG.
The Notice of Civil Claim received from MOAG is for general damages, interest on those general damages and costs.
As stated previously, Highbank believes that the option agreement on the Highland Valley property was validly terminated and the Highbank was within its rights to cancel the remaining escrow shares. Highbank intends to defend its action in this matter, and pursue every remedy available for what we believe to be a frivolous legal claim.
On behalf of the Board of Directors of
HIGHBANK RESOURCES LTD.
"Victor N. Bryant"
Victor N. Bryant,
This News Release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
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.