ENGLEWOOD, Colo., April 28 /PRNewswire/ -- Echo Bay Exploration Inc. and
Echo Bay Management Corporation, indirect subsidiaries of Echo Bay Mines Ltd.
(Amex: ECO; Toronto), have received the decision of the Nevada Supreme Court
in the case involving the companies' obligations to pay certain royalties to
Summa Corporation. In an unpublished order filed April 26, 2000, the full
text of which only became available to the companies the afternoon of April
27, the Supreme Court of Nevada reversed the decision of the trial court and
remanded the case back to the trial court for "a calculation of the
appropriate [royalties] in a manner not inconsistent with this order". The
companies believe that the Court's decision is incorrect and intend to pursue
all available remedies to seek the Court's redetermination of its decision.
In September 1992, the Summa Corporation commenced a lawsuit against the
Echo Bay companies, and the predecessor owner of the McCoy/Cove and Manhattan
mines, alleging improper deductions in the calculation of royalties payable
over several years of production at those mines. The matter was tried in the
Nevada State court in April 1997, with Summa claiming more than $13 million,
and, in September 1997, judgment was rendered for the Echo Bay companies. The
decision was appealed by Summa to the Nevada Supreme Court which heard the
matter on November 9, 1999. If the decision is upheld, the royalty
calculation at McCoy/Cove would change and additional royalties would be
payable from April 1997.
The case was decided by a panel comprised of three of the seven Justices
of the Supreme Court of Nevada and the Echo Bay defendants will petition that
panel for a rehearing. If the petition is unsuccessful, the Echo Bay
defendants will petition the Supreme Court for a hearing before the full
Court. Both the Echo Bay defendants and their counsel believe that grounds
exist to modify or reverse the decision.
Echo Bay mines gold and silver in North America. The primary markets for
its shares are the American and Toronto stock exchanges.
SOURCE Echo Bay Mines Ltd.
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Related links:
http://www.echobay.com
CONTACT:
Lois-Ann L. Brodrick, Vice President and
Secretary of Echo Bay Mines Ltd., 303-714-8838
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