Bre-X Minerals rejects Golden Valley claim

Bre-X Minerals rejects Golden Valley claim

CALGARY, Canada (Reuter): Bre-X Minerals Ltd said Tuesday that a recent statement from Golden Valley Mines NL which says the Australian company is entitled to a piece of Bre-X's huge Indonesian gold discovery is "false and misleading."

"There is no evidence of a written agreement to support the alleged claims," Bre-X said in a statement.

Bre-X said it has notified Golden Valley and the Australian Stock Exchange that Golden Valley's announcement is "false and misleading."

Golden Valley said in statement on Sunday that it had reached a deal with PT Krueng Gasui of Indonesia.

The Indonesian company has a 10 percent stake in one section of Bre-X's spectacular Busang discovery. The partner recently told Bre-X it believes it is entitled to a similar stake in the rest of the Busang property.

Golden Valley said in its statement that it had entered into a technical assistance and finance agreement with the Indonesian partner.

Golden Valley said the Indonesian partner entered into a deal with Bre-X in 1987 that gives it "a call option over a further 20 percent interest in shares" of the Bre-X subsidiary that controls the Busang deposit.