Touchstone Exploration Inc. press release
Stelco comments on judge's reasons in Georgian Windpower application
TSX - Toronto Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada
HAMILTON, ON, June 30 /CNW/ - Stelco Inc. (TSX:STE) today commented on reasons issued by the Superior Court of Justice (Ontario) in the matter of an application brought by Georgian Windpower Corporation ("GWC") and heard by the Court on June 27, 2005. In its application, GWC had asked that the Court-ordered stay of legal proceedings against Stelco during the CCAA period be lifted so that GWC could bring a legal action against the Company. The statement of claim concerned a Memorandum of Understanding ("MOU") regarding the general principles with respect to the development of a wind energy project at Stelco's Lake Erie property and a related Agreement to Enter into a Land Lease Agreement ("AELLEA") concerning the establishment of a land lease easement agreement. Stelco opposed allowing the action to proceed. It submitted that the MOU and the AELLEA did not constitute binding contracts and contained provisions enabling the Company to terminate the agreements. In the reasons that were issued following the hearing, the Court ordered that any part of the claim that was based on the MOU should be removed from the statement of claim and dismissed. With respect to that portion of the claim that relied on the AELLEA, the Court held that the AELLEA portion of the claim could proceed and that the stay would be lifted to allow it to proceed but that no step could be taken to press the action before termination of the CCAA proceedings absent another Court order. Stelco noted that the MOU contained four of the five aspects of the proposed business relationship between Stelco and GWC that were at issue. Stelco believes it has a good defense to the AELLEA portion of the claim.
About Stelco
Stelco Inc. is a large, diversified steel producer. Stelco is involved in major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses.
This news release may contain forward-looking information with respect to the Corporation's business operations, financial performance and conditions. Actual results may differ from expected results for a variety of reasons including factors discussed in the Corporation's Management's Discussion and Analysis section of the Corporation's 2004 Annual Report. To learn more about Stelco and its businesses, please refer to our Web site at http://www.stelco.ca/, www.stelco.ca.
%SEDAR: 00001549E