|October 19, 2011|
Midlands To Defend Claim By Euro Pacific Canada Inc.
|Midlands Minerals Corp. ("Midlands" or the "Company") (TSX-V:MEX; OTCQX:MDLXF) announces that Euro Pacific Canada Inc. ("Euro Pacific") has filed a Statement of Claim (the "Claim") in the Ontario Superior Court of Justice on October 17, 2011 naming Midlands as defendant. Management believes that the Claim has no merit and intends to vigorously defend this action. A Notice of Intent to Defend, as well as a counterclaim, will be filed on behalf of Midlands in this regard.|
In the Claim, Euro Pacific alleges that a letter agreement (the "Letter") that was signed by former management of Midlands gave Euro Pacific a right of first refusal that was allegedly breached in connection with the private placement Midlands completed on August 29, 2011. Accordingly, Euro Pacific is requesting $10 million in damages for breach of contract, plus costs and interest, in respect of a financing that raised total gross proceeds of $7.3 million. The Letter was allegedly entered into four days before the negotiated change in management and board of directors of the Company on June 30, 2011. Midlands believes the Letter is not binding or enforceable and that, in any event, Euro Pacific never fulfilled the express obligations prescribed by the Letter so as to either earn the upfront work fee of $50,000 that it was paid or so as to be in a position to try and enforce or claim breach of the right of first refusal in the Letter. Midlands believes that even if the Letter was enforceable at some point in time, Euro Pacific was in material and fundamental breach of its prescribed obligations and is therefore precluded from claiming breach of such terms, as provided in the Claim.
On behalf of the Board of Directors:
Chairman of the Board
For further information, please contact:
+1 (530) 414-4400
ABOUT MIDLANDS MINERALS
Midlands Minerals is focused on developing a portfolio of high quality gold exploration projects in Ghana and Tanzania, countries with exceptional histories of gold production and home to some of the most profitable gold mines in Africa. Midland's flagship gold property is the Sian project, site of a past producing open pit gold mine located in the Ashanti gold belt. Sian has NI 43-101 compliant Indicated gold resources of 2.6 million tonnes grading 2.33 gpt gold (192,400 ounces) and Inferred gold resources of 2.7 million tonnes grading 2.35 gpt gold (203,350 ounces). Extensions to these resources are open along strike and at depth, highlighting the potential to grow the gold resource at Sian. Midlands' highly prospective Kaniago gold project is located in Ghana's Asankrangwa gold belt and contiguous to two past open pit gold producers: Abore to the north and Obotan to the south. Recent drilling and exploration has produced highly encouraging results, demonstrating the gold resource potential of the project.
Midlands also has two gold exploration projects in the Lake Victoria Goldfields in Tanzania. The Itilima project is located in the prolific Geita-Bulyanhulu-Sekenke gold belt, host to over 40 million ounces in gold reserves, as well as the Kilindi-Handeni project.
Please note: mineral resources that are not mineral reserves do not have demonstrated economic viability. Additional information on Midlands can be viewed under the Company's profile at www.sedar.com or on Midlands' website: www.midlandsminerals.com.
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the company's projects and other future plans, objectives or expectations of Midlands Minerals Corp. (the "Company") are forward-looking statements that involve various risks and uncertainties. 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 the Company's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
Neither TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), nor the OTCQX accepts responsibility for the adequacy or accuracy of this release.
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