On May 7, 2013, local Armenian environmental NGO, ECOLUR, published a report that the Ministry of Nature Protection of the Republic of Armenia rejected the applications of Environmental Impact Assessment Study (EIA) to three companies, including that by Mego-Gold, Global Gold Corp's Armenia subsidiary operating the Toukhmanuk Gold Project.
(Link to ECOLUR site: http://www.ecolur.org/hy/news/officials/nature-protection-ministry-issued-negative-opinion-to-mining-projects/4844/)
Without an EIA GBGD can not build a new tailings damn. Without local community support and the support of the Village of Melik, which is against the tailings damn, GBGD can not build a new tailings damn. Without an approved tailings damn, GLOBAL GOLD CORP is not able to operate its mine. The Toukhmanuk Gold mine is GBGD's only active gold mine which has been shut down since 2012.
Global Gold has failed to report in its financial statements with the SEC that its applications for tailings damn have been rejected now 3 times. This a major material disclosure which can impact the ownership of Global Gold's license on the Toukhmanuk Gold Mine.
What is even more of an important disclosure is how will Global Gold keep its license in good standing if it can not operate and mine 168,500 tonnes a day, as is required under it submitted and approved mine plan.
This brings us to another major misstatement (ie lie) that GBGD has been making.
GBGD has also been misleading its investors over the last 4 years, claiming they only needed to mine 80,000 tonnes of ore a year at the Toukhmnauk Gold Mine. GBGD only disclosed the truth recently in their 10-K for the period of December 31, 2012, filed with the SEC on April 16, 2013, which states:
"The Company is required to pay annual governmental fees of approximately $ 32,000. The Company is also required to spend annually approximately $ 1,200,000 on exploration work and mining annually 168,500 tonnes of mineralized rock at the property as submitted and approved in its mining plan in order to maintain the licenses in good standing "
Prior to this new disclosure statement on the Toukhmanuk Gold Mine, GBGD had been misrepresenting the fact (ie lying) to their investors and the SEC by stating:
"The Company is required to pay annual governmental fees of approximately $ 32,000. The Company is also required to spend annually approximately $ 1,200,000 on exploration work and mining annually 80,000 tonnes of mineralized rock at the property as submitted and approved in its mining plan in order to maintain the licenses in good standing. "
GBGD has to mine 168,500 tonnes of ore per year since 2006, bringing the total to 1,011,000 tonnes at the end of 2012. GBGD has only mined 176,000 tonnes so far and is in technical default of their "approved" mine plan.
Global Gold has also failed to invest $ 1,200,000 a year in exploration, another default of the mining license / contract.
Why GBGD shares are trading at $ 0.15 and a market cap of $ 12MM is beyond me. If you look at the trading price you will note that it is artificially supported, which is evidenced with high trading close price.
About this Blog: Between 2009 and 2012 I was an active investor in the mineral exploration sector in the Republic of Armenia. Our main project in Armenia was the MARJAN polymetallic gold and silver project located in near Sissian. My JV partner, Mr. Van Z. Krikorian, President of Global Gold Corp (otcqb: GBGD) and Trustee of the Armenian Assembly of America, used corrupt means including using his influence with the US EMBASSY in YEREVAN to secure an indictment against me for theft of the JV and to corrupt the Armenia judicial system to give him a favourable ruling.
Mr. Van Z. Krikorian is the President, CEO and Legal Counsel of Global Gold Corp. (otcqb:GBGD), a penny stock listed on the OTC markets. His public filings with the US Securities and Exchange Commission fail to fully disclose the reality on the ground in Armenia in the promotion and development of GBGD's gold project, the TOUKHMANUK GOLD MINE.
This blog is an effort to bring transparency of the activities of Global God Corp. (otcqb: GBGD) and Mr. Van Z. Krikorian in Armenia.