NEW YORK, March 1, 2012 /PRNewswire/ -- Ruby Creek
Resources, Inc. (OTCBB: RBYC), a gold exploration and mining
company with operations in Tanzania, commenced a lawsuit against Handeni
Gold Inc. (formerly Douglas Lake Minerals, OTCBB: HNDI) in Supreme
Court, State of New York on
February 8, 2012.
The lawsuit addresses Handeni's undisclosed and fraudulent
re-sale of all or part of the Mkuvia properties to Guizhou Geology
and Mineral Resources Development Company Limited, Di Ying (Tianjin) Mining Technology Development Company
Limited, Zhongsham Jin Tai Real Estate Development Company
Limited. The sales occurred between March 2010 and October
2010, damaging Ruby Creek's
business. These properties were originally conveyed to
Ruby Creek by Handeni in 2009 and
2010 through a series of agreements dated November 7, 2009, May 19,
2010, March 7, 2010 and
May 24, 2010 which are fully
disclosed in Ruby Creek's SEC
filings.
In 2011, when Ruby Creek
discovered the 2010 conveyance and transfers, Handeni offered to
compensate Ruby Creek for Handeni's
breaches of the parties' agreements. Handeni also agreed to
waive the payments due to Handeni for the Mkuvia property until an
agreement was reached. Ruby
Creek confirmed the conveyances by Handeni through Tanzanian
Mining Ministry Title Searches in September 2011. Despite
this, and despite notice to Handeni's new management and Board, no
settlement has been reached with Handeni.
In response to Ruby Creek's
lawsuit, Handeni claims to have filed a lawsuit in British Columbia on February 23, 2012, seeking the payments which it
waived with respect to the property rights it wrongfully
conveyed. Ruby Creek believes
Handeni's claims are without merit and will both vigorously
prosecute its lawsuit and seek dismissal of the British Columbia lawsuit.
Ruby Creek does not anticipate
that the Handeni litigation will affect Ruby Creek operations. The wrongfully
conveyed property represents only 4 of Ruby
Creek's 15 prospecting licenses and does not encompass
Ruby Creek's existing mining
license.
About Ruby Creek Resources, Inc.
Ruby Creek Resources, Inc. (www.rubycreekresources.com) is
a gold exploration and mining company. Ruby Creek operates in Tanzania through its subsidiaries,
Ruby Creek Gold (Tanzania) Limited and Ruby Creek Resources
(Tanzania) Limited.
Ruby Creek is the operator of the
Tanzania Gold Plateau Project, establishing operations and
infrastructure, along with the permitting process in support of the
full development and commencement of gold mining operations on the
project.
Forward-Looking Statements
This news release may include certain forward-looking
statements. All statements, other than statements of
historical fact, included in this release are forward-looking
statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ
materially from those anticipated in such statements. This
notice expressly qualifies all forward-looking statements in this
release. The Company, through its management, makes
forward-looking public statements concerning its expected future
operations, performance and other developments. Such
forward-looking statements are necessary estimates reflecting the
Company's best judgment based upon current information and involve
a number of risks and uncertainties, and there can be no assurance
that other factors will not affect the accuracy of such
forward-looking statements. It is impossible to identify all
such factors, factors that could cause actual results to differ
materially from those estimated by the Company. They include,
but are not limited to, government regulation, managing and
maintaining growth, the effect of adverse publicity, litigation,
competition and other factors, which may be identified, from time
to time in the Company's public announcements.
SOURCE Ruby Creek Resources, Inc.