Barisan Gold faces potential litigation

Barisan Gold Corporation said it has been advised that PT Linge Mineral Resources, PT Gayo Mineral Resources and East Asia Minerals Corporation have been named as defendants and Barisan Gold as a co-defendant in a civil case claim filed by PT Atlas Mineral Exploration with the Central Jakarta District Court.

Atlas Mineral is an Indonesian company that owns a 12 percent direct equity interest in each of Linge Mineral and Gayo Mineral. Barisan Gold is the majority shareholder of Linge Mineral and Gayo Mineral with an 80 percent direct equity interest in each company. Atlas Mineral is majority owned by a relative of a previous consultant to East Asia Minerals (EAMC) who left EAMC in October 2010.

Atlas Mineral approached Gayo Mineral and Linge Mineral in recent months asking that its 12 percent equity interest in both companies be acquired. When Barisan Gold and Atlas Mineral could not agree on reasonable terms, including a price fair and reasonable to Barisan Gold for the sale of the interests held by Atlas Mineral, the company (Atlas) filed this action.

The claim filed by Atlas Mineral purports to challenge the asset transfer process by which East Asia Minerals transferred its 80 percent direct equity interest in Linge Mineral and Gayo Mineral to its wholly owned subsidiary, Barisan Gold.

?Barisan Gold strongly believes the claims are clearly without merit and intends on defending against this frivolous lawsuit vigorously. The company has received legal advice confirming that the transfer of PT Linge Mineral and PT Gayo Mineral from East Asia Minerals to Barisan Gold was legally executed in accordance with Indonesian law.

Barisan Gold, its subsidiaries and East Asia Minerals intend to file their own claims and seek the maximum damages from Atlas Minerals under Indonesian law in response to this claim.

The defendants and co-defendant have engaged the services of Fredrik J. Pinakunary Law Offices and Bahar & Partners as Indonesian legal counsel with regards to this matter. The first hearing in this case is expected in 2-3 months. (roffie/romel)