SPOKANE, Wash., Aug. 19, 2015 (GLOBE NEWSWIRE) -- Mines Management Inc. (NYSE-MKT: "MGN", TSX: "MGT", the "Company") is pleased to report that the U.S. District Court of Montana, Missoula Division (the "Court") ruled in favor of the Company on Friday, August 7, 2015, in the case involving alleged mineral claims overlying the Montanore adit, affirming the conclusions of the court-appointed Commission (the "Commission"). In their report, previously announced on May 14, 2015, the Commission ordered that the claim holders would receive zero compensation for the easement and rights-of-way granted by the Court to the Company for the use of its Montanore adit.
The claim holders, a group known as Optima Inc. led by former Montana Governor Brian Schweitzer, Francis Duval ("Optima"), and Arnold Bakie, had contended that the Company owed Optima $10 million in compensation for the use of the Montanore adit that allegedly crossed their claims, and that the value of their claims had been reduced as a result of the presence and use of the adit.
Evidence supporting the Commission's conclusion in part showed that there had, in fact, been no valuable mineral discoveries on the claims, and a 2008 effort made by the group to relocate the claims over the adit from a different location had been rejected by the Bureau of Land Management ("BLM").
Mr. Glenn M. Dobbs, the Company's Chairman and CEO, stated, "It is gratifying that the Commission and the court have, after examining the evidence, concluded that the adit and our activities do not reduce the value of Optima's alleged claims, and in their favorable ruling have provided vindication for the years of misinformation distributed by the Optima group in their effort to extract money and stock from Mines Management. The easement granted by the U.S. District Court affirms the validity of our activities through the existing adit, and protects the construction of an additional adit planned for the Montanore mine project once it is approved by regulators."
Although the Company's access to and operations within the Libby adit were never interrupted, the Company obtained its easements and other access rights through a preliminary condemnation order and injunction issued against the defendants on April 29, 2014.
The three person commission, the members of which were selected by the U.S. District Court and are considered experts in mineral law, heard the case over the three day trial which concluded on April 10, 2015. Mines Management expects it will continue to prevail through any future challenges or appeals.
ABOUT MINES MANAGEMENT
Mines Management, Inc. is engaged in the business of exploring, and if exploration is successful, developing mineral properties containing precious and base metals. The Company's primary focus is on the advancement of the Montanore silver-copper project located in northwestern Montana. The Montanore is an advanced stage exploration project, which deposit contains mineralized material of approximately 81.5 million tons with average grades of 2.04 ounces silver per ton and 0.74% copper in two mineralized zones.
In 2011, in accordance with Canadian National Instrument (NI) 43-101, the Company completed a third party Preliminary Economic Assessment (PEA) which indicated robust potential economics. The mineral resource was reported to contain the following:
| Tons | Silver Grade (oz. per ton) | Copper Grade | |
| Measured | 4,026,000 | 1.85 | 0.74% |
| Indicated | 77,480,000 | 2.05 | 0.75% |
| Inferred | 35,080,000 | 1.85 | 0.71% |
The Montanore project is currently in the final phase of the permitting process which, if completed successfully, would allow for the construction of the project. Prior to considering a development decision, the Company plans to conduct additional underground evaluation and drilling activities to support completion of a final feasibility study. Preparation for additional evaluation and drilling could commence upon issuance of a Final Record of Decision and completion of certain environmental mitigation activities, if sufficient funds are available.
Additional information is available on the Company's website at www.minesmanagement.com.
Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated and Inferred Mineral Resources:
This press release uses the terms "Measured Mineral Resource", "Indicated Mineral Resource", and "Inferred Mineral Resource." We advise U.S. investors that while those terms are recognized and required by Canadian NI 43-101, the Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. Inferred Mineral Resources have a greater amount of uncertainty as to their existence and as to their economic and legal feasibility. In accordance with Canadian rules, estimates of Inferred Mineral Resources cannot form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that part or all of the Inferred Mineral Resources exists, or is economically or legally mineable. The SEC normally only permits issuers to report mineralization that does not constitute 'reserves' by SEC standards as "in place" tonnage and grade without reference to unit measures. Accordingly, the information contained in this press release may not be comparable to similar information made public by U.S. companies that are not subject to NI 43-101.
Statements Regarding Forward-Looking Information: Some statements contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable U.S. and Canadian securities laws. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially, including comments regarding no obligation to pay compensation for the taking of easements and other rights at the Montanore project, estimates of mineralized material and mineral resources, and potential robust economics for the Montanore project; and planned underground evaluation and drilling activities and feasibility study and the potential timing thereof. Actual results may differ materially from those presented. Factors that could cause results to differ materially include potential adverse decisions in appeals of rulings in the condemnation litigation; continued disputes regarding claim ownership and rights in the Montanore project area; uncertainties regarding whether the Company will be able to raise sufficient external funding to continue its business, including planned underground evaluation and drilling activities and the feasibility study, on acceptable terms or at all; potential unfavorable results of further exploration at the Montanore project or changes in interpretation of geological and other technical information, which could reduce amounts of reported mineralized material and mineral resources; whether additional permitting may be required at Montanore in the future; the results of delineation drilling and feasibility studies and their effects on reported mineralized material and mineral resources and on the potential economics of the Montanore project; continued decreases or future fluctuations in silver, gold and copper prices; and world economic conditions. Mines Management, Inc. assumes no obligation to update this information. There can be no assurance that future developments affecting Mines Management, Inc. will be those anticipated by management. Please refer to the discussion of risk factors in the Company's Form 10-K for the year ended December 31, 2014. Additional information is available at www.sec.gov and www.sedar.com.
For more information, contact:
Douglas D. Dobbs
President, Mines Management, Inc.
Phone: 509-838-6050
Fax: 509-838-0486
Email: info@minesmanagement.com
Web: www.minesmanagement.com
HUG#1946366