Court decision could affect Frontier Pacific

Vancouver — A Turkish court decision might disrupt operations at the Ovacik gold mine, which is soon to be acquired by Frontier Pacific Mining (FRP-V).

The company has agreed to buy the mine from Newmont Mining (nem-n) for US$30 million plus deferred payments of up to US$14 million (T.N.M., July 2/04).

The verdict from the Izmir 3rd Administration Court nullifies Newmont’s trial operating permit, and if the decision is implemented, milling may have to cease.

Newmont’s Turkish subsidiary, Autin Investments, can appeal the decision; it expects the interruption will be only temporary.

Both Frontier Pacific and Newmont are concluding the agreement. Newmont is extending the August 15 sale date to allow for resolution of legal issues.

Meanwhile, Frontier Pacific is moving forward on its final technical and financial due diligence for the transaction.

Ovacik has operated since 2001 and employs more than 400 Turkish workers and consultants.

Frontier’s shares dropped 10% to 49.5 on volume of 256,000 shares on the news. The company has 32 million shares outstanding.