Appointment of New President FOR MT. Labo and Commencement of Arbitration Announcement to the Toronto Stock Exchange and Australian Securities Exchange
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES
APPOINTMENT OF NEW PRESIDENT FOR MT. LABO
AND
COMMENCEMENT OF ARBITRATION
ANNOUNCEMENT TO THE TORONTO STOCK EXCHANGE
AND AUSTRALIAN SECURITIES EXCHANGE
17 MAY 2017
The Board of RTG Mining Inc. (“RTG”, “the Company”) ( TSX Code: RTG, ASX Code: RTG )
is pleased to announce the appointment by Mt. Labo Exploration and Development
Corporation (“Mt. Labo”) of a new President, Mr. Eduardo U. Escueta. Mr. Escueta is a
well-respected and experienced businessman and lawyer in the Philippines. He was
previously a partner of Angara Abello Concepcion Regala a nd Cruz (ACCRA Law), one of
the top law firms in the Philippines and was the Vice -Chairman and Executive Officer of the
National Police Commission for eight (8) years (2008 -2016). With his credentials, Mr.
Escueta is well-equipped to manage the varied interests of Mt. Labo in the Mabilo Project.
RTG as a shareholder in Mt. Labo, welcomes the appointment of Mr. Escueta as President
of Mt. Labo and wishes him well in his future endeavours with the company.
Having now provided Galeo Equipment Corporatio n (“Galeo”) with an extended period of
time to cure its numerous breaches of both the compromise agreement reached in June last
year and the Joint Venture Agreement between Mt. Labo and Galeo (in respect of the Mabilo
Project) (“JVA”), Mt. Labo has had no option but to terminate the JVA in accordance with its
terms because Galeo failed to cure its breaches.
Mt. Labo has now also commenced arbitration proceedings against Galeo in the Singapore
International Arbitration Centre in accordance with the provisi ons of the JVA and the
compromise agreement. In those arbitration proceedings, Mt. Labo seeks a number of
reliefs, including a declaration that the JVA was validly terminated and the compromise
agreement was validly rescinded. Under the JVA, on terminati on the innocent party is then
given the right to buy out the guilty party at a 10% discount to book value, which for the joint
venture is nominal given it was still in the exploration phase of the project.
As we have stated previously, Mt. Labo had hope d to avoid commencing proceedings, but
the actions of Galeo to date have left the company with no other option to protect its
interests.
ABOUT RTG MINING INC
RTG Mining Inc. is a mining and exploration company listed on the main board of the
Toronto Stock Exchange and Australian Securities Exchange. RTG is focused on
developing the high grade copper/gold/magnetite Mabilo Project and advancing exploration
on th e highly prospective Bunawan Project, both in the Philippines, while also identifying
major new projects which will allow the Company to move quickly and safely to production.
RTG has an experienced management team (previously responsible for the developm ent of
the Masbate Gold Mine in the Philippines through CGA Mining Limited), and has B2Gold as
one of its major shareholders in the Company. B2Gold is a member of both the S&P/TSX
Global Gold and Global Mining Indices.
ENQUIRIES
Australian Contact US Contact
President & CEO – Justine Magee Investor Relations – Jaime Wells
Tel: +61 8 6489 2900 +1 970 640 0611
Fax: +61 8 6489 2920
Email: [email protected] [email protected]
Website – www.rtgmining.com
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This announcement includes certain “forward -looking statements” within the meaning of
Canadian and applicable securities legislation. Statement s regarding interpretation of
exploration results, plans for further exploration and accuracy of mineral resource and
mineral reserve estimates and related assumptions and inherent operating risks, are
forward-looking statements. Forward -looking statements involve various risks and
uncertainties and are based on certain factors and assumptions. There can be no assurance
that such statements will prove to be accurate, and actual results and future events could
differ materially from those anticipated in such statements. Important factors that could
cause actual results to differ materially from RTG’s expectations include uncertainties related
to fluctuations in gold and other commodity prices and currency exchan ge rates;
uncertainties relating to interpretation of drill results and the geology, continuity and grade of
mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates,
production estimates and estimated economic return; the need for cooperation of
government agencies in the development of RTG’s mineral projects; the need to obtain
additional financing to develop RTG’s mineral projects; the possibility of delay in
development programs or in construction projects and uncertaint y of meeting anticipated
program milestones for RTG’s mineral projects and other risks and uncertainties disclosed
under the heading “Risk Factors” in RTG’s Annual Information Form for the year ended 31
December 2016 filed with the Canadian securities regu latory authorities on the SEDAR
website at sedar.com. The forward ‐looking statements made in this announcement relate
only to events as of the date on which the statements are made. RTG will not release
publicly any revisions or updates to these forward ‐looking statements to reflect events,
circumstances or unanticipated events occurring after the date of this announcement except
as required by law or by any appropriate regulatory authority.