April 1, 2015 Teuton Resources Corp. (“Teuton”) (“TUO”-TSX-V) (“TFE”- Frankfurt) (“TEUTF”—OTCBB) announces that a hearing in front of the Registrar was held yesterday, March 31, 2015, in order to determine the quantum of special costs to be awarded against Teuton, pursuant to the order made by Justice Grauer in regard to the litigation between Teuton and American Creek (“AMK”) in respect of the Treaty Creek property.
AMK had originally claimed that it was entitled to $2,000,000 in special costs. Just prior to the hearing on March 31, 2015 AMK’s solicitors had sent a Revised Bill of Costs to Teuton asking for a total of $247,481.
This award of special costs became part of the appeal heard March 9-11, 2015. Judgment is currently under reserve and is expected within the next several months. The Company expects a positive outcome to the appeal but cautions that there is no guarantee of such result.
The Registrar adjourned generally the assessment originally scheduled for March 31st and April 1st, 2015. The parties are at liberty to book a date to the mutual satisfaction of both parties. Recent inquiries with the Vancouver Registry indicate that the earliest available two day hearing is October 5th, 2015. The Registrar ordered that Teuton pay AMK a total of $165,000 no later than June 1st, 2015, as security for the costs yet to be assessed. Teuton’s preliminary assessment of the quantum of special costs is in line with the $165,000 interim payment, and may have influenced the Registar’s decision in setting that amount. The Company is hopeful that the appeal decision will be rendered before June 1st, 2015, making it unnecessary to make payment to AMK.
As at the date of its latest financial statements, Sept. 30, 2014, AMK’s working capital deficiency was $2,474,908. For this reason, the Company is concerned that AMK would be unable to pay it back the $165,000, should the appeal decision be rendered in Teuton’s favour subsequent to June 1st, 2015. This is in addition to its concern as to recovering the $621,712 already paid to AMK on account of party-and-party costs and disbursements.
Should the appeal decision not be rendered by June 1st, 2015, the company is at liberty to apply for a stay of the interim payment pending the outcome of the appeal.
All of Teuton’s mineral claims were formally returned to Teuton today and are again under Teuton’s name in the Mineral Titles online system.
Castle Resource—Leduc Silver Claims
Also today, Teuton served notice on Castle Resources requesting that Castle return to Teuton all mineral claims held by Castle subject to the 2010 agreement between Castle and Teuton in respect of the Silver Leduc property. Castle was to make an annual royalty payment on Dec. 31, 2014 but failed to do so. Teuton alerted Castle as to the default but no money came in within the 3 month grace period in which Castle could have cured the default. That grace period expired yesterday, March 31, 2015.
In 2006, Bell Resources (which eventually sold the Granduc property and assigned the surrounding Silver Leduc option to Castle Resources) reported drilling of the JK zone on one of Teuton’s Silver Leduc claims. This drilling resulted in intersections containing mineralization consistent with the Besshi-VMS copper-bearing bodies to the south at the formerly producing Granduc mine. Glenn Zinn, CEO and President of Bell, stated at the time that these intersections “are very exciting to the Company [Bell] and worthy of further exploration”. These Silver Leduc claims will be returned to Teuton.
Also included in the claims coming back to Teuton are the Pearson 1-4 claims. In 2007, Teuton personnel discovered a copper-bearing structure on these claims, which lies directly on strike with the prolific Granduc copper-bearing zones to the south-southwest. The zone was observed running up the side of a mountain for at least 400m before disappearing under talus cover.
Respectfully:
“Dino Cremonese, P.Eng.”
President,
Teuton Resources Corp.
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This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Teuton Resources Corp. does have an ongoing obligation to disclose material information, as it becomes available.
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