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New Brunswick Court of Queen's Bench Render's Decision on NPI claimed by Fern Trust(Canada Newswire English Via Acquire Media NewsEdge) Attention Business/Financial Editors Shares Outstanding: 363 Million Symbol & Exchange: BN-TSX MONTREAL, Feb. 25 /CNW Telbec/ - Blue Note Mining Inc. reports that the New Brunswick Court of Appeal has upheld the decision of the New Brunswick Court of Queen's Bench granting partial Summary Judgement in favour of Diorite Securities Limited, in its capacity as Trustee of the Fern Trust (the "Fern Trust") regarding its claim to a 10% Net Profits Interest (the "NPI") in and to the Caribou Mine (the "Mine"), owned by Blue Note Caribou Mines Inc., a subsidiary of Blue Note Mining Inc. (collectively, the "Company"). The Court upheld the decision that the NPI is binding upon the Mine and the Company. The Company initially brought the issue of the applicability of the NPI before the Court in January, 2007, to bring certainty to the claim to the NPI by the Fern Trust. Prior to the Company acquiring the Mine, the Fern Trust had not provided the Company with an executed copy of the NPI instrument nor had it demonstrated that it was the current counter-party to the NPI. The Company questioned whether, in the circumstances, the Company had sufficient actual notice of the NPI in order that the NPI was binding on the Company and the Mine. To protect the Company from the uncertainty, the Company sought direction from the Court. The litigation continues on the issue of whether the Company, by questioning the applicability of the NPI upon a subsequent purchaser of the Mine, has repudiated or breached the NPI. As matters now stand, the Fern Trust lawsuit remains in place on these issues and the Company continues to vigorously deny the allegations. Further, management is consulting with counsel regarding whether the NPI ceases to have any force or effect in light of the CCAA filing of Blue Note Caribou Mines Inc on February 20, 2009. In accordance with its terms, the NPI was to expire should the predecessor grantor became subject to the CCAA. As the Courts have ruled that the Company has succeeded to the position of the prior grantor, the Company is investigating whether the NPI has any further force of effect. The decision has no immediate financial impact on the Company as no profits have been derived from the Mine to date. The calculation of the payments under the NPI are governed by the terms of the NPI which, in management's view, provide that no amounts are payable until all historic costs are re-couped. In management's estimation, the historic costs include an estimated $165,728,628.00 incurred by prior owners of the Mine. Disputes as to amounts payable are to be arbitrated in accordance with the terms of the NPI. Blue Note Mining is a Canadian mining and mineral exploration company headquartered in Montreal with base metal and gold exploration properties in Bathurst, New Brunswick. The company's shares trade on the TSX under the symbol BN. Forward-Looking Statements This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company's products and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities. The TSX does not accept responsibility for the adequacy or accuracy of this news release. Lorne Woods, Vice President, Investor Relations, Blue Note Mining, (800) 937-3095, [email protected]; www.bluenotemining.ca Copyright ? 2009 Canada Newswire Ltd. All Rights Reserved. |