CALGARY, Aug. 25 /PRNewswire-FirstCall/ -- Infinito Gold Ltd. (IG, TSX Venture Exchange) ("Infinito Gold" or the "Company") is pleased to announce that the International Center for the Settlement of Investment Disputes ("ICSID") has issued a Decision on Jurisdiction ("Decision") in the matter of the arbitration between the Company and the Bolivarian Republic of Venezuela ("Venezuela") dated August 22, 2008. The Decision concludes the process commenced in July of 2006 when Venezuela raised objections to the Arbitral Tribunal's jurisdiction to rule on the Las Cristinas case pursuant to the Agreement Between the Government of Canada and the Government of the Republic of Venezuela for the Promotion and Protection of Investments.
Venezuela raised four objections pertaining to the jurisdiction of the Arbitral Tribunal and the Decision states that three of these objections are dismissed and one will be joined to the merits of the case. The Company maintains, among other things, that its rights to mine Las Cristinas were expropriated in a discriminatory manner and without prompt, adequate and effective compensation by Venezuela after an investment of approximately US$185 million for the exploration and development of the properties that led to a determination of reserves in excess of 12 million ounces of gold and over 1 billion pounds of copper. The Company is requesting restitution of its contractual rights to mine the property plus damages or, in lieu of restitution, monetary damages of approximately US$ 1.1 billion representing costs and lost profits.
The Arbitral Tribunal has indicated that, after consultation with the parties involved, it will issue an Order for the further procedure which will mean a re-commencement of the arbitration merits process that was suspended in July of 2006 when the jurisdictional issue was raised by Venezuela.
While the company is confident in the validity of its position, there can be no assurance that it will be successful in all, or part, of its claims and any award granted will be shared with other parties according to pre-existing contractual agreements.
Caution Regarding Forward-Looking Information and Statements ------------------------------------------------------------
Certain statements in this press release address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. These factors include, among others, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the possibility that all necessary governmental and regulatory approvals will not be received, and the availability of a qualified workforce and third party contractors necessary for the development and operation of a mine. The Company undertakes no obligation to update these forward-looking information or statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking information or statements.
INFINITO GOLD LTD. (signed) John Morgan President "The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release."
