Yamana Gold Responds To Assessment In Argentine Legal Dispute

(RTTNews) - Yamana Gold Inc (AUY, YRI.TO) on Friday responded to the announcement made by Samco Gold relating to the receipt of the assessment of damages relating to the proceedings in the case of Ricardo Auriemma v. 0805346 B.C. Ltd (formally Northern Orion Resources Inc, now a subsidiary of the company). This assessment of damages relates to a contested agreement providing for a preemptive right for Auriemma to participate in the acquisition of Minera Alumbrera Inc made by Northern Orion Resources Inc in 2003. The court appointed arbitrator delivered an assessment of the value of the lost opportunity to Auriemma at $244 million.

The company said its subsidiary will vigorously defend its position in this case, and believes the assessment to be a gross miscalculation of the actual value. Also the company said it has identified significant errors in this assessment of value resulting from the arbitrator's use of improper valuation methodologies and his failure to follow the court's instructions causing the assessment to be significantly inflated. The subsidiary will seek an annulment of this assessment through the judicial process, the company added.

Despite the determination by the Argentine court on the existence of this preemptive right, the company believes there is no valid basis for the claim and the company's subsidiary will continue to utilize all legal remedies and forums to defend against this claim.