Lincoln Gold sued by Ho, Cheung, Dragon over damages

Executive Summary

• Lincoln Gold Mining Inc. and its subsidiary Lincoln Resource Group Corp. have been served with a statement of claim by Albert Fook Lau Ho, Philip Dy Mo Hua Cheung, and Dragon Hill Creation Ltd.
• The claimants are seeking approximately $877,230, plus general damages and interest, alleging unpaid promissory notes and breaches of contractual obligations related to historical loans.
• The company disputes the allegations, intends to file a statement of defense, and asserts that the claim does not constitute a material change in its financial position or significantly impact operations.

Key Details

• Claimants: Albert Fook Lau Ho, Philip Dy Mo Hua Cheung, and Dragon Hill Creation Ltd.
• Amount Claimed: Approximately $877,230, together with general damages and applicable interest.
• Nature of Claim: Alleged unpaid promissory notes and breaches of contractual obligations.
• Basis of Claim: The amounts relate to historical loans that are already reflected in the company's financial statements.
• Company Position: Lincoln Gold disputes many of the facts and allegations and invites the claimants to engage in constructive dialogue.
• Next Steps: The company intends to file a statement of defense.
• Materiality Assessment: The company does not consider the claim to constitute a material change in its financial position nor believe it will have a significant impact on its operations.
• Operational Context: Directors continue to advance operations and actions regarding the company's Nevada gold projects (Bell Mountain and Pine Grove).

Notable Quotes

• "The company disputes many of the facts and allegations of the claim and invites the claimants to engage in constructive dialogue with the company."
• "The company does not consider the claim to constitute a material change in the financial position of the company, nor does the company believe that the claim will have a significant impact on its operations."