Monday, September 22, 2014

CRA Seeks Court Ordered Liquidation of JV and Toukhmanuk Gold Mine: Jersey Court Orders Trial To Commence On An Expedited Basis

Consolidated Resources is suing Global Gold Corp. (otcmarkets:GBGD) and Van Krikorian to recover $2 million in defaulted debt and force the sale of the Toukhmanuk Mine.

A significant amount of background on this issue can be found by reading the Judgment issued by the Royal Court of Jersey on September 11, 2014. (see links below). 

Here is brief overview: 

On April 27, 2011, Consolidated Resources Armenia (CRA) concluded a joint venture agreement with Global Gold Corp. (GBGD) for the development of the Toukhmanuk Gold Mine, called Global Gold Consolidated Resources (GGCRL). The JV received $5 million cash from CRA, and CRA received a 49% interest in the Toukhamnuk Gold Mine. 

In 2012 CRA made an additional loan to JV, which was guaranteed by GBGD, of approximately $1.5 million cash to support the project.

On March 7, 2014, Van Krikorian, as Manager of the JV, called an illegal meeting of the shareholders and directors of the JV in attempt (1) pass fraudulent financial statements to create fake debts of $3.5 million dollars owed to GBGD by the JV,  in an effort to offset the legally binding debts owed to CRA, (2) cancel the JV and (3) take back the assets of the Toukhmanuk Gold Mine illegally using the 51% control of the votes of the JV, even though such actions require agreement by CRA too.

To protect CRA's investment in the JV and recover their loans, CRA sue GBGD and Van Krikorian.
On the 10th of March, 2014, CRA obtained an ex parte interim injunctions against GGCRL, GBGD and Van Krikorian, restraining the Joint Venture Company in any way from disposing of or encumbering or dealing with or diminishing the value of any of its assets whether they are in or outside of Jersey.

GBGD and Van Krikorian applied unsuccessfully for those injunctions to be lifted on the grounds of material non-disclosure but the Court declined to lift the injunctions for the reasons set out in its judgment of 5th June, 2014, (see link below: Consolidated Resources-v-Global Gold [2014] JRC 124).

Mr. Van Krikorian and GBGD also filed a motion to have the case stopped and sent to NY Arbitration, claiming the JV agreement and Shareholders' agreement and Loan Agreement was covered by an Arbitration clause in the JV Agreement.

The Judge ruled that the case will not be stopped and that it will be expedited.

Under Jersey Law, due to deadlock between the parties on how the JV will continue, the Lawyers of CRA argued that the most likely outcome of the case will include a court ordered liquidation of the assets of the JV, which includes the Toukhmanuk Gold Mine.

Below is a list and links to the JUDGMENTS:

List of Court Cases as Published on Royal Court of Jersey Web Site:

Consolidated Resources Armenia 
Global Gold Consolidated Resources Limited 
 (First Defendant)
Mr. Van Krikorian 
 (Second Defendant)
Global Gold Corp 
(Third Defendant)
Judgment: [2014]JRC 169: Royal Court of Jersey: Samedi Division: September 11, 2014

Judgement: [2014]JRC 132: Royal Court of Jersey: Samedi Division: June 18, 2014

Judgement: [2014]JRC 124: Royal Court of Jersey: Samedi Division: June 5, 2014

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.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.