legal action, page-4

Vallenar Iron Company Vallenar Iron clarify criminal complaint against Leonardo Farkas
(company linked to Admiralty Resources NL), feels the need to correct information contained in various newspaper articles that deal with the company. Vallenar Iron Company (company linked to Admiralty Resources NL), feels the need to correct information contained in various newspaper articles that deal with the company.


21/11/08 15:03 Print Print Send Send Editor Editor Mining Mining to date daily news of the day News of the Day



1 .- With regard to the complaint filed by Iron Vallenar against Mr Farkas: 1 .- With regard to the complaint filed by Iron Vallenar against Mr. Farkas:
SCM Vallenar Iron Company in using its legal powers filed a criminal complaint on charges of misappropriation against Mr. Leonardo Farkas Klein in order to investigate and punish illegal actions that may have had Mr. Farkas in his administration earlier. SCM Vallenar Iron Company in using its legal powers filed a criminal complaint on charges of misappropriation against Mr. Leonardo Farkas Klein in order to investigate and Punish illegal Mandriv'Actions that may have had Mr. Farkas earlier in his administration.
Emphatically refuted the allegation made by Mr Farkas on the alleged link between conflict judicializado company in Australia and the criminal complaint brought in Chile. Emphatically refute the allegation made by Mr Farkas on the alleged link between conflict judicializado company in Australia and the criminal complaint brought in Chile. The criminal actions initiated, they say strict connection with the commission of repeated crimes of misappropriation in Chile, for the unfair administration of the heritage of our company, in which he would direct personal responsibility to Mr. Farkas said. The criminal actions initiated, they say strict connection with the commission of repeated crimes of misappropriation in Chile, for the unfair administration of the heritage of our company, in which he would direct personal responsibility to Mr. Farkas said.

2 .- With regard to contracts for buying and selling shares, transaction by which Admiralty took control of the mining in Chile: 2 .- With regard to contracts for buying and selling shares, transaction by which Admiralty took control of the mining site Chile:
The seizure of control of Admiralty Resources NL of the ex-Minera Santa Barbara, was delayed because it was discovered that contracts for the sale, for the purchase of 1% (June 2007) and 10% (July 2007) of the shares of the Fortune Global Holdings, one of the controllers of the mine and linked to businessman Leonardo Farkas, included selling prices that were substantially lower than those which had been agreed between the parties for this operation, according to deeds issued in the notice of Santiago de Doña Antonieta Mendoza Scales. The seizure of control of Admiralty Resources NL of the ex-Minera Santa Barbara, was delayed because it was discovered that contracts for the sale, for the purchase of 1% (June 2007) and 10% (July 2007) of the shares of the Fortune Global Holdings, one of the controllers of the mine and linked to businessman Leonardo Farkas, included selling prices that were substantially lower than those which had been agreed between the parties for this operation, according to Deeds issued in the notice of Santiago de Doña Antonieta Mendoza Scales.
The document stated that: by 1% of the shares of Fortune controlled mining was paid a total of $ 100,000 (equivalent at that time to U.S. $ 189.52), while the actual amount of the transaction was U.S. $ 3,500,000 . The document stated that: by 1% of the shares of Fortune controlled mining was paid a total of $ 100,000 (equivalent at that time to U.S. $ 189.52), while the actual amount of the transaction was U.S. $ 3,500,000. Meanwhile, representing 10% of the shares, the contract price was set at $ 1,000,000 (equivalent at that time to U.S. $ 1909.70) versus the U.S. $ 10,000,000 and 10,000,000 shares of Admiralty Resources NL with which he was paid to Mr. Farkas. Meanwhile, representing 10% of the shares, the contract price was set at $ 1,000,000 (equivalent at that time to U.S. $ 1909.70) versus the U.S. $ 10000000 and 10000000 shares of Admiralty Resources NL with which he was paid to Mr. Farkas.
Having detected these irregularities, December 31, 2007, the then Chairman and Chief Executive Officer of Admiralty Resources NL, Mike Clarke, managed to be practiced rectification of contracts awarded through public deed in that notice, with the aim of establishing the price Actual transfer of the shares. Having detected these irregularities, December 31, 2007, the then Chairman and Chief Executive Officer of Admiralty Resources NL, Mike Clarke, managed to be practiced Rectification of contracts awarded through public deed in that notice, with the aim of establishing the price Actual transfer of the shares.
Admiralty Resources has always been governed and operated in strict compliance with the standards and legislation of the countries in which it operates, so it does not endorse any act which is contrary to that principle. Admiralty Resources has always been governed and operated in strict compliance with the standards and legislation of the countries in which it operates, so it does not endorse any act which is contrary to that principle. In this case, it is assumed that the only benefit was Mr. Farkas, with the obvious tax consequences. In this case, it is assumed that the only benefit was Mr. Farkas, with the obvious tax consequences.

3 .- regards from Vallenar over an alleged Iron: 3 .- regards from Vallenar over an alleged Iron:
Admiralty Resources NL has injected a Vallenar Iron Company for over $ 39,090,826, an amount that is in the nature of subordinated debt, under Chapter 14 of the Compendium of Foreign Investment of the Central Bank. Admiralty Resources NL has to Vallenar Injected Iron Company for over $ 39090826, an amount that is in the nature of Subordinate debt, under Chapter 14 of the Compendium of Foreign Investment of the Central Bank. Of this amount, U.S. $ 28,340,826, equivalent to 72% of the debt was paid at the time Wyndham Explorations was the holding company, which was linked to Mr Leonardo Farkas, who in turn was Chairman of the Board of Minera Santa Barbara and, therefore, who should authorize the injection of capital. Of this amount, U.S. $ 28340826, equivalent to 72% of the debt was paid at the time Wyndham Explorations was the holding company, which was linked to Mr Leonardo Farkas, who in turn was Chairman of the Board of Minera Santa Barbara and, therefore, who should authorize the injection of capital. This contribution he made to Admiralty Santa Barbara, was part of an agreement signed on February 18, 2005, between Admiralty and former NL Minera Santa Barbara, where Leonardo Farkas was President of this directory, and thus signing this document. This contribution he made to Admiralty Santa Barbara, was part of an agreement signed on February 18, 2005, between Admiralty and former NL Minera Santa Barbara, where Leonardo Farkas was President of this directory, and thus signing this document.
Since the signing of the loan agreement (Loan Agreement), Mr. Farkas used these discretionary money, and now claims that Admiralty would have devised a plan to increase the debt Vallenar Iron Company has with it to its current level, and with this, take charge of the company, which is totally untrue. Since the signing of the loan agreement (Loan Agreement), Mr. Farkas used these discretionary money, and now claims that Admiralty currency would have to plan to increase the debt Vallenar Iron Company has with it to its current level, and with this, take charge of the company, which is totally untrue. The loan agreement and the shareholders' pact (Japanese Master), both approved and signed by Mr. Farkas, specifically address the issue of loans to shareholders of Vallenar Iron Company. The loan agreement and the shareholders' pact (Japanese Master), both approved and signed by Mr. Farkas, specifically address the issue of loans to shareholders of Vallenar Iron Company.

4 .- With regard to criticism on contracts for the sale of mineral and possible damage to Wyndham, which is linked to Mr. Farkas: 4 .- With regard to criticism on contracts for the sale of mineral and possible damage to Wyndham, which is linked to Mr. Farkas:
Admiralty Resources NL entered into a contract for the sale of concentrated iron with WISCO (International Economic and Trading Group, Wugang Group) on December 28, 2006, by which time Wyndham Explorations was senior partner and Mr. Farkas held the position of Chairman of Directors of the Ex-Minera Santa Barbara, so it was always informed of the terms of that agreement, and not run into any of the points that included the final document. Admiralty Resources NL entered into a contract for the sale of concentrated iron with WISCO (International Economic and Trading Group, Wugang Group) on December 28, 2006, by which time Wyndham Explorations was senior partner and Mr. Farkas held the position of Chairman of Directors of the Ex-Minera Santa Barbara, so it was always informed of the terms of that agreement, and not run into any of the points that included the final document. Moreover, Admiralty Resources NL requested Mr. Farkas to show their approval in writing to that contract. Moreover, Admiralty Resources NL requested Mr. Farkas to show their approval in writing to that contract.
By the same token, it is worth noting that the Dec. 27, 2006, Mr. Farkas was also Chairman of the Board of Minera Santa Fe (controlled by him), and signed an agreement known as the Iron Ores Sales Agreement, in which it undertook to provide of concentrated iron to WISCO, one day after signing with Santa Barbara. By the same token, it is worth noting that the Dec. 27, 2006, Mr. Farkas was also Chairman of the Board of Minera Santa Fe (controlled by him), and signed an agreement known as the Iron Ores Sales Agreement, in which it undertook to provide to WISCO of concentrated iron, one day after signing with Santa Barbara.
It should be that given the current conditions in the price of iron, the contract stated by Mr. Farkas is very favorable for the company. It should be that given the current conditions in the price of iron, the contract stated by Mr. Farkas is very favorable for the company.

5 .- With regard to alleged misconduct at the shareholders' agreement: 5 .- With regard to alleged misconduct at the shareholders' agreement:
The Shareholders' Agreement between Fortune Global Holdings (a company controlled by Admiralty Resources NL) and Wyndham Explorations SA (controlled by Mr. Leonardo Farkas) is called Japanese Master Agreement, which joins a supplementary agreement known as the Side Letter To The Japanese Master Agreement . The Shareholders' Agreement between Fortune Global Holdings (a company controlled by Admiralty Resources NL) and Wyndham Explorations SA (controlled by Mr. Leonardo Farkas) is called Japanese Master Agreement, which joins a supplementary agreement known as the Side Letter To The Japanese Master Agreement . Both governing the commercial relationship between the parties and were signed freely by the Admiralty and Mr Leonardo Farkas. Both governing the commercial relationship between the parties and were signed freely by the Admiralty and Mr. Leonardo Farkas. Therefore, the relations between the shareholders are governed by these agreements, the statutes of the company and the rules of the Mining Code, as ex-Minera Santa Barbara-current-Vallenar Iron is a Contract Mining Company. Therefore, the relations between the shareholders are governed by these agreements, the statutes of the company and the rules of the Mining Code, as ex-Minera Santa Barbara-current-Vallenar Iron is a Contract Mining Company.
Considering the above, if Mr Farkas wanted to maintain control over the ex-Minera Santa Barbara, should not have sold 11% of its shares in the company with which it ceased to have control of the company, because in doing so was hosted the content of the signed agreements. Considering the above, if Mr Farkas wanted to maintain control over the ex-Minera Santa Barbara, should not have sold 11% of its shares in the company with which it ceases to have control of the company, because in doing so the content was hosted of the signed agreements.

6 .- With regard to alleged changes in working conditions and benefits for workers of the Ex-Santa Barbara: 6 .- With regard to alleged changes in working conditions and benefits for workers of the Ex-Santa Barbara:
The comments of Mr. Farkas in relation to that, with the takeover of Vallenar Iron Company from Admiralty Resources NL, employees of Vallenar Iron Company suffered a decline in their wages and benefits, is totally false. The comments of Mr. Farkas in relation to that, with the takeover of Vallenar Iron Company from Admiralty Resources NL, employees of Vallenar Iron Company suffered a decline in their wages and benefits, is totally false. Vallenar Iron Company maintained these conditions to their employees and even improvements are being made in infrastructure. Vallenar Iron Company maintained these conditions to their employees and even improvements are being made in infrastructure.
Similarly, Mr. Farkas refers to the removal of two executives of Vallenar Iron Company because of the supposed "juncture". Similarly, Mr. Farkas refers to the removal of two executives of Vallenar Iron Company because of the supposed "juncture". This assertion is also false, because mining in the exercise of their rights decided to terminate the employment contracts of these officials to the requirements of the company. This assertion is also false, because mining in the exercise of their rights decided to terminate the employment contracts of these officials to the requirements of the company.
Admiralty Resources NL, through its President, expressed his pride and expresses its highest appreciation and full support to the management team and employees of Vallenar Iron Company for your entire devotion, dedication and commitment to the company. Admiralty Resources NL, through its President, expressed his pride and expresses its highest appreciation and full support to the management team and employees of Vallenar Iron Company for your entire Devotion, dedication and commitment to the company.

7 .- With regard to the bottom of the shares of Admiralty: 7 .- With regard to the bottom of the shares of Admiralty:
The economic and financial crisis, global phenomenon widely known, has affected Admiralty Resources NL, like all mining companies in the world. The economic and financial crisis, global phenomenon widely known, has affected Admiralty Resources NL, like all mining companies in the world.
Vallenar Iron Company is the largest investment of Admiralty Resources NL. Vallenar Iron Company is the largest investment of Admiralty Resources NL. Evidence of this is that the Australian company sold its assets in Argentina with the aim of concentrating and increase their investments in Chile. Evidence of this is that the Australian company sold its assets in Argentina with the aim of concentrating and increase their investments in Chile.

8 .- With regard to alleged inaccuracies in Admiralty at the last shareholders meeting and meeting directory Vallenar Iron: 8 .- With regard to alleged inaccuracies in Admiralty at the last shareholders meeting and meeting of Vallenar Iron directory:
In response to the indictment of Mr. Farkas in relation to the minutes of last Extraordinary Shareholders and final meeting of directory Vallenar Iron Company, both held on June 19, 2008, contain inaccuracies that are present Miss. In response to the indictment of Mr. Farkas in relation to the minutes of last Extraordinary Shareholders and final meeting of directory Vallenar Iron Company, both held on June 19, 2008, contain inaccuracies that are present Miss. Maureen Ravilet Llanos, a prominent Chilean bilingual lawyer who served as secretary of the board of directors and Mr. Patricio Zaldivar Mackenna, also prominent Chilean lawyer and Notary Public, were present at the extraordinary shareholders meeting in the directory, who can give attest to the truth of what happened at that meeting, and minutes of meeting them. Maureen Ravilet Llanos, a prominent Chilean bilingual lawyer who served as secretary of the board of directors and Mr. Patricio Zaldivar Mackenna, also prominent Chilean lawyer and Notary Public, were present at the extraordinary shareholders meeting in the directory, who can give attest to the truth of what happened at that meeting, and minutes of meeting them. The serious and unfounded accusation of Mr. Farkas is not only an insult to his party to the other shareholders and directors of Vallenar Iron Company, but also to Miss Ravilet and Mr Zaldivar. The serious and unfounded accusation of Mr. Farkas is not only an insult to his party to the other shareholders and directors of Vallenar Iron Company, but also to Miss Ravilet and Mr. Zaldivar. Admiralty Resources NL extends to Miss Ravilet and Mr Zaldivar its most sincere apologies for what was said by Mr. Farkas concerning this topic. Admiralty Resources NL extends to Ravilet Miss and Mr. Zaldivar its most sincere apologies for what was said by Mr. Farkas concerning this topic.

9 .- Objectives of Admiralty Resources NL in Chile: 9 .- Objectives of Admiralty Resources NL in Chile:
Admiralty Resources NL is in the mining business. Admiralty Resources NL is in the mining business. Its objectives are to establish and maintain a profitable operation, therefore, the corporation conducts its corporate affairs on a strictly professional. Its objectives are to establish and maintain a profitable operation, therefore, the corporation conducts its corporate affairs on a strictly professional.
The change of name of Ex-Minera Santa Barbara to Vallenar Iron Company, which both annoys Mr Farkas, reflects the change in the controlling shareholder of the company and its commitment to creating a business based on excellent managerial, technical and administrative . The change of name of Ex-Minera Santa Barbara to Vallenar Iron Company, which both annoys Mr Farkas, reflects the change in the controlling shareholder of the company and its commitment to creating a business based on excellent managerial, technical and administrative. If Mr Farkas wanted to keep the name of Minera Santa Barbara, had been raised and negotiated at the time of selling their shares of Wyndham Explorations in the Ex-Minera Santa Barbara to Admiralty Resources NL, because in so doing surrendered control of the company to the latter. If Mr. Farkas wanted to keep the name of Minera Santa Barbara, had been raised and negotiated at the time of selling their shares of Wyndham Explorations in the Ex-Minera Santa Barbara to Admiralty Resources NL, because in so doing surrendered control of the company to the latter.

Source / Source Vallenar Iron / Iron Vallena