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St Andrew Goldfields' shares rally on positive court verdict

May 16, 2011 11:13 AM ET
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Shares of St Andrew Goldfields (TSE:SAS) jumped on Friday after the company said that an Ontario court has dismissed an appeal against an earlier case that found in its favour.

The original case was a royalty dispute between St Andrew and Newmont Canada (NYSE:NEM) over the Holt property in Ontario, which was acquired by St Andrew from Newmont in November 2006.

The initial verdict, from July 2009, upheld St Andrew's position that the royalty on the property owed to Newmont was limited to a flat rate 0.013% net smelter return on any production.

"We are very pleased with the outcome of the appeal", said president and CEO of St Andrew, Jacques Perron.

"The Holt mine is a significant asset for the company and today's decision strengthens the value of the Holt Mine property and allows us to advance our plans for it.

"We remain focused on achieving our targets for this year, with production from all three mines and our aggressive exploration programs."

St Andrew is a gold exploration and development company with an extensive land package in the Timmins mining district, in northeastern Ontario.

Last month, the company announced that its Holt property achieved commercial production at an average daily throughput of between 450 to 500 tonnes per day.

The Holt mine, along with St Andrew's Holloway and Hislop mines, are targeted to produce between 85,000 and 95,000 ounces of gold this year.

St Andrew shares were up more than 7% on Friday, trading at $1.07 as of 1:29pm EST.

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