COPPER DEVELOPMENT CORP 
By
For immediate release 8 August 2012
("CDC" or "the Company")
Status of Approval of Basay Deed of Assignment
On 10 January 2011, Euzkadi Holdings Corporation ("Euzkadi"),
the registered holder of the Basay tenement, executed a deed
of assignment with Adanacex Resources Inc. ("Adanacex"), a 70
per cent owned subsidiary of Copper Development Corporation
(AIM: CDC) to assign and transfer all of its rights, title
and interest in the Basay exploration permit to Adanacex (the
"Basay Deed of Assignment"). Upon the approval of the Basay
Deed of Assignment by the relevant Philippine authorities,
Adanacex will formally be registered as the holder of the
Basay exploration permit.
The Company has not yet received approval of the assignment
of the Basay exploration permit to its
Philippine subsidiary Adanacex.
As previously announced by CDC, VeraLaw, a leading Philippine
law firm, advised the Company that the Privatization and
Management Office ("PMO") has, in the past, alleged that part
of the area covered by the Basay exploration permit covers
land it holds in trust for the Government of the Philippines.
However, in its legal opinion on this matter VeraLaw advised
that, on the evidence it reviewed at the office of the Mines
and Geosciences Bureau ("MGB"), this would not appear to be
the case (a view shared at that time by the MGB, which
awarded the Basay exploration permit). In the light of this,
VeraLaw's legal opinion stated that there is no reason that
the Basay Deed of Assignment would not be formally
approved.
On 26 September 2011, CDC received a second legal opinion
from the Philippine affiliate office of a leading
international law firm, which upheld the first legal opinion
that PMO did not have a legal claim to any area of the Basay
tenement, that the Regional MGB office certified that Basay
was outside the areas under PMO claims, and that PMO had not
filed an adverse claim within the ten days of publication of
the Basay exploration permit, which is the time limit and
last opportunity for filing such claims.
CDC expected to receive approval of the Basay Deed of
Assignment, having satisfied all documentary requirements for
this purpose. However, not having received the approval, CDC
had several meetings with MGB's director and a meeting with
PMO, without being successful in dissuading PMO from dropping
its claim to areas under the Basay exploration permit. Most
recently, CDC's local counsel received a letter dated 16 July
2012 from MGB, which, ignoring the legal position presented
to it from the two above legal opinions, stated that PMO "is
also a government agency and it is only proper for this
Office [MGB] to pay attention to the concerns of the PMO,
particularly about the PMO-held area in Basay".
Pending approval of the assignment, CDC operates under the
terms of the Basay Deed of Assignment, under which it
effectively holds full rights to operate on the tenement. CDC
continues vigorously to defend the challenge posed by the
unfounded PMO claim on Basay and shall, in due course, file
for renewal by MGB of the Basay exploration permit, due in
December 2012. Adanacex has complied with all legal and
regulatory requirements, and has met the minimum annual work
commitments and is accordingly confident that, through
Euzkadi, such application for another two-year renewal of the
exploration permit shall be approved.
In the event the Company is unsuccessful with its efforts to
renew the Basay exploration permit and/or secure approval of
the Basay Deed of Assignment to Adanacex, it will review all
available legal options.
As and when the Company has further news to report in
relation to the ongoing dispute regarding Basay it will make
an announcement to the market.
Copper Development Corporation | Beaumont Cornish Limited | GMP Securities | GTH Communications |
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