October 8, 2014 TSX-V:AMK
Cardston, Alberta… American Creek Resources Ltd. (TSX-V:AMK) (“American Creek” or “the Corporation”) wishes to provide an update as to events related to the ongoing litigation with Teuton Resources Corp. (“Teuton”) over the Treaty Creek property as well as the recent news release issued by Seabridge Gold (“Seabridge”) related to the KSM Project including the proposed twin tunnels that pass through American Creek’s Treaty Creek property.
As previously announced (April 15, 2014 and May 9, 2014), 100% of the legal title to the Treaty Creek property has been transferred to American Creek pursuant to the judgment of the British Columbia Supreme Court. The Court found that American Creek had met its obligations under the option agreement with Teuton and had earned a 51% interest in the Treaty Creek property and that Teuton breached the agreement in refusing to transfer title to American Creek.
Teuton filed a Notice of Appeal on May 8, 2014, to which the Corporation has responded. The appeal proceedings are scheduled to be heard in the British Columbia Court of Appeal on January 19-21, 2015. The Corporation is confident in the decision of the British Columbia Supreme Court and expects that it will also prevail in the Court of Appeal.
Furthermore, the Corporation is proceeding with its claim to seek special costs against Teuton. The costs hearing is scheduled to be heard by the Court on November 3, 2014. This application has the potential to result in the recovery of significant legal fees from Teuton related to this action.
The Corporation also wishes to comment on the news release issued by Seabridge on September 29, 2014 which included the following statements:
Seabridge Gold announced today that it has received early-stage construction permits for its KSM Project from the Province of British Columbia. The permits issued include: (1) authority to construct and use roadways along Coulter Creek and Treaty Creek; (2) rights-of-way for the proposed Mitchell-Treaty tunnels connecting project facilities; (3) permits for constructing and operating numerous camps required to support constructions activities; and (4) permits authorizing early-stage construction activities at the mine site and tailings management facility.
The granting of land tenure for the proposed Mitchell–Treaty tunnels is an especially important milestone for the project, as it awards to KSM the rights to a corridor connecting the project’s two main areas -- the mine site and the tailings management facility,” Fronk stated.
Prior to Seabridge’s news release, American Creek has had ongoing contact with, and submitted various reports and recommendations to, several departments of the British Columbia government in response to Seabridge’s 2012 application for a Licence of Occupation under the Land Act through the Treaty Creek claims related to the proposed Mitchell-Treaty tunnels (“MTT”).
American Creek confirms that it has not agreed to grant Seabridge access through its Treaty Creek property for the construction of the MTT. The Corporation has consistently stated that access would be granted only on terms maximizing value to American Creek’s shareholders. The Corporation expects these terms to include provisions for condemnation drilling and independent, third-party pre-construction assessment of the mineral potential along the tunnel route as well as appropriate compensation to the mineral tenure owner, all of which are long-standing precedents in the British Columbia mining industry.
Since the Seabridge news release on September 29, 2014, the Corporation has been in contact with various departments of government in an effort to determine how the mineral tenures owned by the Corporation may be impacted.
The Corporation has determined the following:
1) A Revised Licence of Occupation Management Plan for the KSM Mine Project Mitchell-Treaty Tunnels (MTT) was submitted by Seabridge to the Ministry of Forests, Lands and Natural Resource Operations, Skeena Region on July 4, 2014. Among other things, this document contains a section titled “Benefits to Holders of Third Party Tenures” (Section 7.1) in which Table 4 summarizes the following potential benefits:
MTT rock assays
MTT geotechnical and geochemical data
Road Access from Highway 37
Potential for accessing power from the NTL at the Treaty switching station
2) Several Initial Site Construction permits for the KSM Mine Project were issued on September 26, 2014.
3) A Licence of Occupation under the Land Act was granted to Seabridge on September 27, 2014 which includes the following clause: “this Agreement is subject to the prior rights of the holder of the mineral claims 392436, 251232, 392435, 251229, 251231, 251230, 390924, 392462, 392463, 392464 and 560221.” These referenced mineral tenures are part of American Creek’s Treaty Creek property.
The documents referred to above may be viewed in their entirety by clicking (here).
The Corporation has requested that the Ministry of Forests, Lands and Natural Resource Operations forward a copy of all relevant permits so that a complete assessment of the potential impacts to the Corporation’s mineral tenures can be made.
The Corporation is pleased that Seabridge’s KSM project continues to move forward and that the government of British Columbia appears to be supportive. At the same time, the Corporation intends to make every effort to ensure that the mine approval and development process is transparent, fair and objective and that the rights of all parties involved are respected.
The Treaty Creek property is situated in northwest British Columbia, Canada, and is contiguous with Seabridge’s KSM project and in the same region as Pretium Resources Inc.’s Snowfield / Brucejack (Valley of the Kings) projects.
American Creek Resources Ltd. is a Canadian junior mineral exploration company focused on the acquisition, exploration and development of mineral deposits within the Province of British Columbia, Canada.
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 or accuracy of this release.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Corporation will obtain from them.