Sonora Gold Corp. CA$0.05 0.0000 (0.00%)

Sonora given one month to settle Canaco dispute

Vancouver, British Columbia (October 28, 2010 - Sonora Gold & Silver Corp. (the "Company" or "Sonora")) Further to Sonora Gold & Silver Corp.'s news in Stockwatch on Oct. 22, 2010, representatives of Sonora attended a meeting at the office of the Commissioner for Minerals for the United Republic of Tanzania on Oct. 28, 2010. Also present at the meeting, were the Commissioner for Minerals, representatives of Canaco Resources Inc. and the holder of mining licence No. 413/2010, over which the company has an option.

argaiv1661

At the meeting, the minister indicated that it was the interest of the government of Tanzania to see that the Magambazi mineral property is developed into a large-scale mine in the future and that this can be achieved if the area covered by ML 413/2010, which is located within the larger area covered by Canaco's prospecting licence, becomes part of the project.

The minister has directed that the ML holder, Canaco and Sonora hold discussions to resolve their business arrangement amicably, and that the parties should resolve the matter and report to the commissioner not later than Nov. 29, 2010.

The company would like to reiterate that it had on its own accord, directly notified Canaco on July 30, 2010, of its option agreement with the holder of the PML and provided detailed co-ordinates of the area of land covered by the PML, as a measure of good faith to settle the matter in an amicable fashion. Subsequently, the company has made numerous attempts to contact Canaco, but Canaco has not responded to any of these attempts.

"We feel very strongly that Sonora's board and management has taken all appropriate and legal steps to confirm validity of title and licence status prior to entering into the agreement with the private PML holder to acquire the Handeni mining licence and we hope that an amicable solution can be reached with Canaco expediently. Furthermore, we would like to assure our shareholders that we will not be deterred in our focus to continue exploration on all fronts, including the advancement of the Negese property," states company president, Ken Churchill.

ON BEHALF OF THE BOARD OF DIRECTORS

Signed:
"Ken Churchill"

Ken Churchill
President & CEO, Director

For further contact:
Ken Churchill
Tel: 778.373.5499
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

Subscribe to our News Alerts

*Email:
 

Properties

Negese Property

Contact

Sonora Gold & Silver Corp.
210 - 905 West Pender St.
Vancouver, BC V6C 1L6

Tel: 604 398 5396