Franklin Lake Resources Announces
Settlement of Dispute with Xenolix Technologies
SOUTH SAN FRANCISCO, Calif., Feb 6, 2004 (BUSINESS WIRE)
-- Franklin Lake Resources Inc. (OTCBB:FKLR),
an exploratory stage mining company, announces that it
has reached a settlement with Xenolix Technologies,
Inc., in their dispute over Franklin Lake's cancellation
of a contract between them. Father Gregory Ofiesh,
president and CEO of Franklin Lake, said both parties
were eager to resolve this outstanding issue in order to
devote their efforts to their primary businesses.
In April 2002, the parties entered into an agreement
whereby Franklin Lake acquired two patents, including
future improvements, other trade secrets, equipment, and
processed material from Xenolix. In July 2003, Franklin
Lake determined that, despite every effort, the patents
and other technology did not work on its material and
cancelled the contract. It also demanded the return of
the shares and warrants issued to Xenolix. Xenolix
refused to accept this cancellation and to return the
shares and warrants.
Father Ofiesh said that the dispute risked litigation
and both parties wanted to avoid the expenses, delays,
risks, and uncertainties a lawsuit would entail. With
neither party acknowledging wrongdoing or liability, the
parties agreed that Franklin Lake will keep the two
patents and other intellectual property, the equipment,
and the processed material it received from Xenolix;
Xenolix will return 601,657 of the shares of Franklin
Lake common stock and the two warrants it received
(retaining 600,000 shares of stock); and Franklin Lake
will issue Xenolix one new warrant for 600,000 shares of
its common stock, exercisable at a price of $0.30 per
share, and expiring on June 30, 2004.
NOTE: This news release contains forward looking
statements. Forward looking statements involve known and
unknown risks and uncertainties that may cause the
Company's actual results to differ materially from
forecasted results.
SOURCE: Franklin Lake Resources Inc.
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