Scorpio Gold Announces Settlement of Court Proceedings Relating to a Subsidiary
TSX-V: SGN
1462 de la Québécoise
Val-d’Or, QC, J9P 5H4
T: 819- 825-7618
www.scorpiogold.com
News Release No. 233
Scorpio Gold Announces Settlement of Court Proceedings
Relating to a Subsidiary
Vancouver, February 14, 2017 - Scorpio Gold Corpor ation (“Scorpio Gold” or the “Company”) (TSX-V:
SGN) announces it has reached a settlement with Na tional EWP, Inc. (“National”) to end the court
proceedings involving its 70% indirectly owned subs idiary Mineral Ridge LLC (“MRG”), the operator of
the Company’s Mineral Ridge gold operation.
In its prior ruling, the Second Judicial District Court of Washoe County, Nevada issued a judgment
awarding National US$2.3 million in its lawsuit agai nst MRG. The Company and its legal advisors
disagreed with both the Court’s legal conclusions and its factual findings and be gan the appeals process.
To prevent any collection activities during the pendency of the appeal, MRG was required to provide cash
security to the court in the amount of the judgment. During the early stages of the appeal, Nevada court
rules required both parties to attend a settlement c onference with a court-appointed mediator to seek
agreeable settlement terms. After negotiation with National, the Company determined that it was in its best
interest to settle the case for an amount of US$1 million and end the costly litigation.
This settlement allows Scorpio Gold to avoid signif icant legal fees during a potentially lengthy appeals
process and provides for return of $1.3 million of the $2.3 million cash security posted with the court. MRG
can thereafter use the freed up funds to further advance its Nevada properties.
About Scorpio Gold
Scorpio Gold holds a 70% interest in the Mineral Ridge gold mining operation located in Esmeralda County,
Nevada with joint venture partner Elevon, LLC (30% ). Mineral Ridge is currently in production as a
conventional open pit mining and heap leach operation. The Mineral Ridge property is host to multiple
gold-bearing structures, veins and lenses at exploration, development and production stages. Scorpio Gold
also holds a 100% interest in the advanced explora tion-stage Goldwedge property in Manhattan, Nevada,
with a fully permitted underground mine and 400 ton per day mill facility. The Goldwedge mill facility has
been placed on a care and maintenance basis and can be restarted immediately when needed.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Brian Lock,
Interim CEO
For further information contact:
Chris Zerga, President
Tel: (819) 825-7618
Email: [email protected]
Scorpio Gold Corporation | 2
Investor Relations
Jag Sandhu, JNS Capital Corp.
Tel: 778-218-9638
Email: [email protected]
Website: www.scorpiogold.com
Neither TSX Venture Exchange nor its Regula tion Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Company relies on litigation protection for forward-looking statements. This news release contains forward-looking statements
that are based on the Company’s current expectations and estimat es. Forward-looking statements are frequently characterized by
words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other simil ar
words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause act ual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such fo rward-looking statements, including the outcome of the litigation and
those risk factors outlined in the Comp any’s Management Discussion and Analysis as filed on SEDAR. Any forward-looking
statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company
disclaims any intent or obligation to update any forward-looking st atement, whether as a result of new information, future even ts
or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should
not be put on such statements due to the inherent uncertainty thereof.