--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------
New York (euro adhoc) - New York, NY-- May 8, 2009--.EuroGas, Inc. (Other OTC:
EUGS; Frankfurt Stock Exchange: EUG.F; XETRA: {EUG.DE}[HYPERLINK:
http://EUG.DE]; Hamburg Stock Exchange: EUG.H; and, Stuttgart Stock Exchange;
{EUG.SG}[HYPERLINK: http://EUG.SG]) today announced that it has instructed its
legal counsel in the United States and Austria to undertake legal action for
industrial espionage and fraud against VSK Mining s.r.o., its shareholders VSK
Mining Limited Cyprus andSchmid Industrieholding Austria GmbH, as well asVSK
Mining's employee and Project Manager Peter Corej and his wife Zdenka Corejeva
(the VSK Group) in relation to their involvement with the illegal cancellation
of Rozmin s.r.o.'s valid mining concession at the Gemerska Poloma talc deposit
in the Slovak Republic. Rozmin is a Slovak mining company which is 90% owned
directly by EuroGas, Inc. or its affiliates (the EuroGas Group).
Recent information obtained from a deposition taken by the Slovak Republic
police from Mr. Peter Corej, a former affiliate and employee of the EuroGas
Group, revealed that Mr. Corej has admitted, under oath, to have illegally taken
important, proprietary and confidential business documents and geological
materials, belonging exclusively to the EuroGas Group, that he then used in his
successful bidto obtain a new talc mining concession at Gemerska Poloma in the
Slovak Republic in April 2005 for Economy Agency RV s.r.o., a company owned by
his wife Ms. Corejeva. This bid was made after theMinistry ofEconomy's Mining
Office at Spisska Nova Ves had illegally cancelled Rozmin's legal and
validconcession in December 2004.
The cancellation of Rozmin's valid mining concession and the granting of a new
mining concession toEconomy Agency were ruled to have been illegal by the
Supreme Courtof the Slovak Republic in a non-appealable February 2008 ruling
which ordered the Ministry of Economy's Mining Office at Spisska Nova Ves to
correct this matter forthwith.
EuroGas fully expects that the non-appealable Slovak Supreme Court ruling will
result in the return of the Gemerska Poloma talc deposit to its rightful owner
Rozmin without further delay. The legal action against VSK Mining and its
affiliates that is being launched is a distinct and separate action whose
objective is to recover the substantial damages in the amount of appr. $ 150
Mill. incurred by the EuroGas Group since 2005, as a direct result of the loss
of the Rozmin concession caused by the illegal actions of the VSK Group.
Subsequent to obtaining the new mining concession for Economy Agency, Mr. Corej
- according to his admissions under oath in the Slovak police deposition-
successfully negotiated an amalgamation of Economy Agency with VSK Mining, which
became the owner, as the legal successor to Economy Agency, to the talc mining
concession at Gemerska Poloma, one of the largest and purest talc ore bodies in
the world. According to his admissions under oath, Mr. Corej provided EuroGas
Group's exclusive proprietary and confidential business documents and geological
materials to VSK Mining and allowed VSK Mining to use this information for its
own benefit and profit.
VSK Mining is 75% owned by VSK Mining Limited Cyprus, a company owned by the
Industrial Group of Dr. Jacek Engel. The balance of 25% in VSK Mining s.r.o. is
held bySchmid Industrieholding,a large construction material company of Wopfing
, Austria .
In addition to the investigation by the District Attorney's Office of the Slovak
Republic into the illegal activities of Mr. Corej and his wife Ms. Corejeva,
EuroGas has learned that there are currently active police investigations by the
Slovak Police to determine the extent, if any, of the involvement of certain
officials of the Ministry of Economy's Mining Offices in this matter.
Wolfgang Rauball, Chairman and Chief Excecutive Officer of EuroGas Inc. comments
: "Thanks to the excellent results of the police investigation in the Slovak
Republic and the expeditious work of the Slovak police authorities, I am
convinced that our damage lawsuit against VSK Mining, its affiliates and the
participating individuals will be successful. Furthermore I am confident that we
will be still this year see the return of the Gemerska Poloma talc mine in
Roznava to the EuroGas Group and that we will start producing talc together with
our industrial partner Mondo Minerals.?
In March 2009 EuroGas had entered into a long-term exclusive talc delivery
agreement with Mondo Minerals B.V., one of the leading talc producers and talc
refiners worldwide. The agreement calls for talc delivery of a minimum of 60.000
tons of pure raw talc by the EuroGas Group for an initial period of 10 years
with an option for Mondo Minerals to prolongue the agreement for an additional
20 years. Additionally EuroGas has granted Mondo Minerals a right of first
refusal to acquire Rozmin s.r.o. in case EuroGas wants to divest its investment
in Rozmin.
About EuroGas, Inc.
EuroGas is a publicly traded oil and gas company with assets in Ukraine and
Poland , as well as talc mining interests in the Slovak Republic and mining
properties in Arizona . The company's common stock trades on the Frankfurt and
Hamburg Stock Exchanges and Xetra in Germany under the symbol EUG and on the
Other OTC (Pink Sheets) in the United States under the symbol EUGS. Further
information about EuroGas can be found at {www.eurogasinc.com}[HYPERLINK:
http://www.eurogasinc.com]
" Safe Harbor " Statement under the Private Securities Litigation Reform Act of
1995:
This press release includes forward-looking statements intended to qualify for
the safe harbor from liability established by the Private Securities Litigation
Reform Act of 1995.
You can identify forward-looking statements by their use of the forward-looking
words "anticipate," "estimate," "project," "likely," "believe," "intend,"
"expect," or similar words. These statements discuss future expectations,
contain projections regarding future developments, operations, or financial
conditions, or state other forward-looking information. When considering the
forward-looking statements made in this press release, you should keep in mind
the risks noted and other cautionary statements throughout this press release.
You should also keep in mind that all forward-looking statements are based on
management's existing beliefs about present and future events outside of
management's control and on assumptions that may prove to be incorrect. If one
or more risks identified in this press release or other filing materializes, or
any other underlying assumptions prove incorrect, our actual results may vary
materially from those anticipated, estimated, projected, or intend
For further information, please contact:
Wolfgang Rauball
President & CEO, EuroGas, Inc
Telephone: (212) 618-1274
Further inquiry note:
For further information, please contact:
Wolfgang Rauball
President & CEO, EuroGas, Inc
Telephone: (212) 618-1274
end of announcement euro adhoc
--------------------------------------------------------------------------------
emitter: EuroGas, Inc.
Neuer Markt 9/3
A-1010 Wien
phone: +43 1 230 8613 0
FAX: +43 1 230 8613 13
mail: ingo.soriano-eupen@eurogas.at
sector: Energy
ISIN: US2987341045
indexes:
stockmarkets: free trade: Hamburg, Frankfurt, Stuttgart
language: English
OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS - WWW.OTS.AT | CNE
