Geovic Mining Corp. (“Geovic” or “the Company”) (TSX: GMC)(OTCBB: GVCM) is pleased to announce it has resolved the previously disclosed accounting disagreement with Societe Nationale d’Investissement du Cameroun (“SNI”). Geovic indirectly owns 60.5% of Geovic Cameroon plc (“Geovic Cameroon”), the entity that owns the Nkamouna cobalt/nickel/manganese project, while SNI owns or represents 39.5%.
As discussed in Press Releases dated June 24th and June 26th, 2009, the two parties previously disagreed on the accounting treatment of foreign exchange gains applicable to capital contributions made by Geovic Mining to Geovic Cameroon prior to 2007. SNI had also initiated litigation for the removal of Deloitte & Touche Afrique Centrale Sarl (“Deloitte”) as Geovic Cameroon’s statutory auditor.
Both parties have agreed to settle the disagreement as follows:
– Any exchange rate gain registered in Geovic Cameroon’s accounts will be shared by all Geovic Cameroon shareholders on a proportionate basis.
– Deloitte will remain as Geovic Cameroon’s statutory auditor.
– Pending litigation between SNI and Geovic Cameroon will be withdrawn.
Notably, the settlement is expected to have no material impact on the financial statements of Geovic Mining.
Geovic Mining CEO John E. (“Jack”) Sherborne stated: “Amicable resolution of this disagreement is another positive milestone in the Company’s efforts to commence financing and construction of Nkamouna in the second half of 2010. Geovic and SNI look forward to continued co-operation in our mutual target of building the world’s largest primary cobalt mine.”
Geovic is a U.S.-based corporation whose principal asset is 60.5% of a significant cobalt-nickel-manganese deposit in the Republic of Cameroon, Africa. Additional Company initiatives and Project information may be found on the websites www.geovicenergy.com, www.sedar.com, and www.sec.gov. For more information, please go to www.geovic.net.