Century wins latest court decision in Shahuindo battle (August 15, 2007)

There was little surprise for Sulliden Exploration (SUE-T) today when a Lima court ruled in favour of Algamarca, a Peruvian company now owned by Century Mining (CMM-V).

The Commercial Chamber of the Superior Court of Lima declared that an arbitral agreement granted in Sullidens favour in 2006 was invalid.

The two companies have been fighting over the Shahuindo gold property since 2002 when Algamarca, under different management, transferred the property to Sulliden.

The latest decision says that the Algamarca president did not have the authority to include a certain provision in the transfer contract.

Sulliden was not surprised at the ruling because the company objected to the makeup of the judicial panel and did not participate in the public hearing held on June 27.

Sulldien has been uncomfortable with the processes, said Sulliden president John Kearney in a statement.

The companys lawyers say the ruling is wrong in law. Sulliden has filed an appeal relating to the judicial panel as well as a nullity petition seeking to set aside the hearing on June 27.

The latest court decision does not address the actual transfer contract between Algamarca and Sulliden, but the case may be ruled by the courts instead of being dealt with through arbitration.

Sulliden has started a legal action in Canada against Algamarca to enforce the contract and for damages of US$200 million.