Supreme Court Proceedings Continue on EMC Metals’ Nyngan Project Earn-in Dispute

EMC Metals Corp. (TSX:EMC) reported that a settlement was not reached during a mediation that took place on September 27, 2012. As previously reported, the Supreme Court of Victoria, in Melbourne, Australia directed that legal proceedings brought by Jervois Mining Limited against EMC, relating to EMC’s earn-in of a 50% interest in the Nyngan Scandium Project in New South Wales, Australia, be referred to mediation.

As quoted in the press release:

The Supreme Court proceedings will therefore continue, and EMC will vigorously prosecute its defence and counterclaim, filed on August 20, 2012, seeking relief that includes:

• a declaration from JRV that EMC satisfied the earn-in conditions set out in clause 6.2 of the Joint Venture Agreement and that upon payment to Jervois of the sum of AUD$1.3M (plus GST), EMC is entitled to a 50% interest in the Joint Venture, and
• a damages award, to compensate EMC for the loss and damage that it has suffered as a result of Jervois wrongfully treating the Joint Venture as terminated.

The damages counterclaim pleaded by EMC specifically relates to the delay that Jervois has caused to the project, associated losses to the project, and costs suffered by EMC, ranging up to A$100 million.

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