Teuton Resources Corp. (“Teuton”) (“TUO”-TSX-V) (“TFE”-Frankfurt) announces that it has commenced legal proceedings as plaintiff against American Creek Resources Ltd. as defendant, concerning the Treaty Creek property located north of Stewart, British Columbia.
The plaintiff and defendant entered into an agreement in writing with respect to the Treaty Creek property (the “Property”) on April 4, 2007 (the “Earn-In Agreement”). Pursuant to the terms of the Earn-In Agreement, the plaintiff and defendant agreed, among other things, that the defendant would earn a 51% undivided interest in the Treaty Creek Property upon the defendant issuing a total of 100,000 common shares in its capital stock to the plaintiff and making exploration expenditures on the property aggregating $5,000,000 over three years.By further agreement in writing dated September 11, 2007 between the plaintiff and the defendant (the “Amending Agreement”), it was agreed, among other things, that the definition of Property under the Earn-In Agreement would include additional claims in British Columbia.
The plaintiff alleges that the defendant is in breach of the terms and conditions of the Earn-In Agreement and Amending Agreement and seeks the following relief:
a) a declaration that the defendant failed to expend sufficient exploration expenditures on the Property, improperly assigned a material interest under the Earn-In Agreement without obtaining the plaintiff’s prior written consent, failed to provide the plaintiff access to data as required, and, improperly dropped claims from the Property.
b) a further declaration that the defendant has no interest in the mineral claims on the Property;
c) a further declaration that the defendant has forfeited to the plaintiff the consideration paid or delivered to the plaintiff;
d) damages for breach of the terms and conditions of the Earn-In Agreement;
The Notice of Civil Claim was sent to the defendant American Creek Resources by registered mail on November 30, 2010.
On Dec. 2, 2010, Teuton was served with a Notice of Civil Litigation dated Dec. 2, 2010 by American Creek Resources Ltd.American Creek alleged, among other things, that it had properly earned its 51% interest in the Treaty Creek property and that Teuton was remiss in not signing over title to this interest to American Creek. It seeks specific performance of the transfer of the 51% interest and damages for breach of contract.
“Dino Cremonese, P.Eng.”
Teuton Resources Corp.
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