BMAV
10 years ago
Does Global Gold Corp. Have any Gold Reserves at TOUKHMANUK?
The AARHUS Centre of Armenia published analysis showing the gold reserves issued by the Armenia GKZ under Decree No. N234 are effectively null and void. Pretty much what I have been echoing for some time.
Read below or go to link: http://aarhus.am/?page_id=1383
About Toukhmanuk gold mine or Decree No. 234 being null and void
The Ministry of Energy and Natural Resources of the RA is Confessing.
The Ministry agrees to declare that the “approved reserves” resulted by the supplementary exploration of Mego-Gold’s Toukhmanuk gold mine in 2006-2008 have not been registered in the balance sheet as a result of which has not been formed new right on Mineral Resource Management.
The web is untangling or about the Decree No. 234 to be null and void.
Through the letter addressed to the Ministry of Energy and Natural Resources of the RA 23.09.2013, we wanted to get a clarification regarding the fact already discussed many times refer to the contradiction in the clauses1 and 4 of the Decree No. 234, dated in 30.10.2009 of the Agency for Mineral Resources of the Ministry of Energy and Natural Resources of the RA on the revaluation of Toukhmanuk gold mine reserves in the Aragatsotn Province by the “Mego-Gold” LLC in 2006-2008.
Because according to the clause 1 of that decision the Agency for Mineral Resources made ??decision:
to approve the reserves of the Central Area of Toukhmanuk gold mine of Aragatsotn Province as of 01.01.2009, in accordance with the Annex 1 to this decision as well as with the data of following table:
According to the 4th clause of the decision:
4. to offer the “Republican State Geological Fund” SNCO to refrain from making amendments in the republican balance sheet of the mineral deposits arising from the clause 1 of the decision until the implementation of the works mentioned in the previous clause.
The issue was worded as follows:
a. if the above mentioned approved reserves have been registered in the republican balance sheet of mineral reserves by the “Republican State Geological Fund” SNCO or not.
The response is the following:
In response to your above mentioned letter, the reserves of Toukhmanuk gold mine in Aragatsotn Province approved by the Decree No. 234, 30.10.2009 have not been registered in the balance sheet of the mineral deposits, in accordance with the demand of the 4th clause of the same decision.
Here we consider necessary to present some of the requirements set by the RA Code on mineral recourses:
Article 63
State registration of geological exploration works, mineral resources reserves, mines, developments
1. Geological exploration works are subject to state registration.
2. It is prohibited to implement geological exploration works without public record.
3. Mineral resources reserves, mines and mineral resources developments are subject to the state registration of the balance sheet, as well as in the form of mineral deposits and developments inventory.
4. On the basis of public records data on mineral resources reserves, mines, developments and geological studies is shaped the fund of mineral resource management.
5. Expert opinion on mineral resources reserves is a basis for registration in the balance sheet
7. As a result of re-establishment mineral resources reserves relevant amendments are made in the state registration
In its response the ministry actually confirms that the requirements of the paragraphs 1 and 2 of Article 63 of the reserves state registration are overlooked by the competent authority, if the reserves were really approved in accordance with the paragraph 1 of the decision.
Or in contrary to the logic and the requirement of the laws the competent authority had approved incomplete explored reserves under the paragraph 1 of decision No. 234, so the Agency for Mineral Resources of the Ministry of Energy and Natural Resources of the RA has committed violation of the law protecting interests of Mego-Gold.
The logic requires making any conclusion based on the legal requirement, therefore, if in 2006-2008 the mine reserves based on the supplementary exploration results were not registered by Mego-Gold, then, proceeding from the above-mentioned paragraphs 1 and 7 of the Article 63, we can conclude that these resources cannot be called approved or reestablished, since relevant amendments were not made in the balance sheet.
“Confirmed” or “unconfirmed” concepts as separate concepts are not included in the Code. In the RA Code on Mineral Resources are commented the concepts “Resources” and “Accounting”.
It is worthy to speak about not registering the resources under the paragraph 4 of the decision N 234 which makes meaningless or null and void the paragraph 1 of the same decision.
Let’s take a few concepts that are commented in the code.
In accordance with the RA Code on Mineral Resources:
Article 3: the main concepts used in the Code:
11) Useful mineral resources- accumulation of useful minerals which volume, quantity, quality, and the position and shape are determined.
12) Mine – a part of the underground, which contains useful mineral which have got geological- economical evaluation.
15) Balance of Mineral Reserves – form of state registration of found mineral resources for each year as of January 1, which contains data on researched mines resources quantity, quality and degree of it exploration, as well as the change during the reporting period
The next question of our letter:
b. Whether the company has carried out the works mentioned in the paragraph 3 of the decision No. 234 or not.
Let us remind that the 3rd paragraph of the decision N 234 is the following; to underline the fact of incomplete exploration of the Central Area of Toukhmanuk gold mine of Aragatsotn Province and the strict necessity to solve the problems mentioned in the paragraph 2.1 of this Decision during the second phase of its supplementary exploration.
The answer is as follows:
“The economic entity has not presented report on the activities planned by the paragraph 3 of the decision of Agency for Mineral Resources of the Ministry of Energy and Natural Resources of the RA as a result of which has not formed new rights on Mineral Resource Management.
The only “valuable” information in the response letter is that the ministry, however, reported that defective works have not been continued, and therefore have not formed new rights on Mineral Resource Management. This honest part of the answer we qualify as an acquisition, this is a news, perhaps unwittingly confession, because at the all response letters distracting from the issues the Ministry tried to disguise through the decision N 234 the fact of operating Mego-Gold illegally without a project and by open cast method and allegedly after revaluation and reestablishment of reserves the geological-economical new conditions predicted the effectiveness of the mine development by the open cast method.
It remains to ask the ministry if a new mineral right has not been formed then in this case how had been confirmed only open pit ore mining in accordance with the mining license agreement No. 287 dated 31.07.2006, and land allocation act 086 for underground mining, and on what legal basis in 12.28.2012 have been reformulated the mineral rights act already suspended by the licensing agreement in 01.11.2008, on what ground mentioned only open pit mine and land allocation established until 2017, when, according to the Ministry’s response letter addressed to us was mentioned that “Until today, the economic entity is implementing exploration activity in accordance with the PV -184 contract, which is valid until January 31, 2015.”
Maybe it is the same kind of misprint as the exploration license granted to Mego-Gold in 02.07.2013, issued for 4 years, instead of 3 years determined by the law. Somebody is prolonging the terms of the Mego-Gold documents by misprints; it is worthy to find out who is that unfortunate benefactor.
Besides making controversial analysis refer to the decision No. 234 we should clarify why the Ministry of Energy and Natural Resources of the RA closes eyes in favor of Mego – Gold which does not fulfill the duties required by law and is carrying out illegal mining.
18.10.2013
Greta Gaboyan
BMAV
10 years ago
GBGD Gold Mine Expansion Rejected In Armenia
Local Armenian NGO, Ecolur.org , published an article today on its website that GBGD's flagship gold mine in Armenia, the Toukhmanuk Gold Mine owned and operated by its subsidiary Mego-Gold, had its mine plan REJECT by the Ministry of Nature Protection (MNR).
In April 2013 the MNR rejected the tailings dam expansion and changed that ruling in June 2014 after the minister was changed. GBGD may still get an approval next year based on a new application. The problem is that GBGD is in technical default of its mining obligations and their mining license expires in February 2015; they may be out of time to make this gold mine work. GBGD has failed to make this gold mine work over the last 6 years during the biggest gold bull market. Now GBGD has $14M in current debt with little or no cash, and gold prices are sinking.
Read articles below:
Armenia full versions: http://ecolur.org/hy/news/officials/nature-protection-ministry-denied-tukhmanuk-deposit-exploitation-project/6885/
English summary Versions: http://ecolur.org/en/news/officials/nature-protection-ministry-denied-tukhmanuk-deposit-exploitation-project/6885/
Google translate of Armenia full version of article:
Nature Protection Ministry Turned Down Tukhmanuk Mining Project
18:29 December 15, 2014
The Ministry of Environment, "Environmental Expertise" is nixes "Mego Gold" is represented by the surface of the gold / Central station / deposit revised work plan.
Experts from the Ministry justification for the negative findings are as follows.
"- Adjusted to the situation map can not be verified due to lack of open and distance from the mine dumps economy and the possible impact on hydrological
- Hydrogeological and geological conditions in the area around the mine is not a full examination of the missing information and sources of groundwater, groundwater resource protection measures, if necessary, wet blasting and drilling program. In addition, the first stage of the operation of the center will be running mine Getik river bed changes, but the material is missing as a result of environmental impact assessments, exposure prevention, elimination or reduction measures for
- Design documentation is missing so far by the company's operations and planned activities on the environment as a result of all the possible positive and negative impacts of integrity, as well as their interaction. In addition, under the project "Environmental" of paragraph 9.1, the operation is completed, reclamation of the subject, again only to be violated as a result of the open pit areas - 4.39 hectares, dumps - 4.34 hectares, serving pit road - 4.4 hectares, was necessary for the implementation of the reclamation expenditures without justification, however, by drawing materials, pile economy under to be sold to a larger area of ??land than is represented in the project documents. In this case there is a particular area on the company's environmental impact for a full and complete picture of conclusions
- According to the "Geological, Mining, lernatekhnikakan, labor protection" brittle rock volume of 3.7 point in the first round of pit contour is hoghabusakan layer 109.82.0 cubic meters remaining aparnerine` 1328913.0 and 1897672.0 cubic meters of rock overburden rock volume that is not corresponds to the "environmental" groups Table 3.2 presents data missing hoghabusakan layer volume and its storage and use of the procedure in accordance with the Government on 08.09.2011. Decision No. 1396-N requirements
Modified the first phase of the project includes pit ore reserves established for only 4.8 percent of the full deposit is required for the design of complex documents including mine the remaining 95.2% of the reserves, the second stage of the design phase of a project to make the enlarged
- Mine does not have to limit emissions / MPE / norms scale / permissions, the waste from the company's activities are not registered, registration, normavorvel, as well as not fully implemented "Soil" The Code of paragraph 3 of Article 59 and Article 13 The requirements of paragraphs 17
- The design documents for technical assignment, open the first phase extraction productivity filed from 2010 onwards, at first it made 120.0 thousand tons in 2011, at 150.0 thousand tons, while in 2014 it will reach 180.0 million tons, followed by 2015 The first stage performance was scheduled to be open to 300.0 thousand tons, while the "environmental impact" part of the operation of a mine expansion project. However, the finalization of the revised design documentation is not clear what changes have been made to date and the date of deposit. the number of resources are included. In addition, the Ministry of Energy and Natural Resources Minister 18.11.2014 No. 01 / 29.3 / 5190-14 notified in writing that "Mego Gold" LLC will provide the Ministry of Energy and Natural Resources Agency OHP 2009 year. No. 234 dated October 30, 3rd paragraph reserves terusumnasirvats problem solving performance requirement of additional exploration, mining stocks as a result of the re-establishment of the balance is not registered
- Mined ore is planned to develop a company owned by a maximum of 100.0 thousand tons per year capacity plant, which does not correspond to the mine production capacity and has no positive conclusion
- It is necessary to introduce the company's activities in the area of ??financial and environmental impact assessment
- It does not work out of the stock as of the date they are and are not listed as a separate hankamarminneri, which is fixed to the working professional opinion of the conclusion of this defect does not provide a complete guarantee "Environmental Impact Assessment" Law 5 Article 1, paragraph "a" sub-paragraph 4 of the full implementation of the requirement,
- Working draft submitted to the alternative solutions, which might not provide the "Environmental Impact Assessment" of Article 5 § 1 of the Part "B" of the Rule requires full implementation. "
Note that on June 30, the Ministry of Environment approved the "Mego Gold" in gold extracting plant tailing dump project, which is still the same ministry in 2013 was rejected.
mgland
10 years ago
International Arbitration Issues Final Award, Granting Over $10.8 Million Damages and Additional Relief in Favor of Global Gold Against Caldera Resources Related to Marjan Gold Mine in Armenia
10:31a ET November 12, 2014 (GlobeNewswire) Print
Global Gold Corporation (OTCQB:GBGD) is pleased to announce that in an International Centre for Dispute Resolution Final Award Retired Justice Herman Cahn as the sole arbitrator ruled in favor of Global Gold on damages and a range of other outstanding issues. The total damage award is $10,844,413 with interest at 9% and penalties continuing to accrue if Caldera does not comply with the equitable relief granted. Of the total damage award, $3 million is compensation and $1 million is punitive damages for the defamatory publications by Caldera's principal Vasilios Bill Mavridis against Global Gold and its principals. This Final Award terminates the arbitration proceedings which Caldera instituted against Global Gold in 2010. Global Gold prevailed in the first, liability phase of the arbitration and four prior court cases, as summarized and reported in April 2013. Global Gold again thanks outside counsel Brian Cousin and his team at Dentons www.Dentons.com --particularly for their tenacious work in uncovering Caldera's securities law violations. With all the legal processes complete, Global Gold is now continuing with the development of the Marjan property and enforcement of the rulings issued. A full copy of the 42 page Final Award as well as the other rulings is available at the Global Gold website: www.globalgoldcorp.com.
Previous rulings in this matter included that Montreal based Caldera Resources, led by the brothers John Mavridis and Bill Mavridis, failed to make agreed payments to Global Gold despite having raised almost $5 million, failed to issue stock due, misrepresented the approval of the Toronto Stock Exchange of the parties' contract, and otherwise breached the joint venture agreement. Caldera through its Biomine, LLC subsidiary also acquired a "Marjan West" license area which it claimed was adjacent to Marjan but in fact overlapped with Marjan. Armenian Courts at three levels found that Caldera had deceptively and illegally registered full control over the Marjan Mining Company to itself without the signatures or authorization of Global Gold, and a U.S. Federal Court confirmed the phase 1 arbitration findings while rejecting Caldera's arguments to vacate the award. The November 10, 2014 Final Award resolved all other outstanding issues with the following specific findings and rulings requiring Caldera to:
-- turn over to Global Gold at its offices in Rye, New York all books, records, contracts, communications, and property related in any way to the Marjan property in Armenia and the Marjan Mining Company, including specifically the Armenian Marjan Mining Company seal, and shall pay Global Gold $50,000 plus $250 per day for every day following issuance of this Final Award that such materials are not delivered;
-- turn over to Global Gold at its offices in Rye, New York communications Caldera and/or Mr. Mavridis has had with third parties concerning Global Gold its officers, agents, directors and business...Without limitation, the following shall also be turned over to Global Gold: all direct and indirect (for example through a translator or agent) communications with the following individuals and organizations: Azat Vartanian, Petros Vartanian, ..., Joseph Borkowski, Jeffrey Marvin,... Prem Premraj..., Rasia FZE, Johan Ulander, Ecolur,... Tom Prutzman, ..., Stockhouse, Investor's Hub, shareholders of Global Gold, and any governmental or regulatory authorities-- Caldera shall pay Global Gold $100 per day for every day following issuance of this Final Award that such materials are not delivered;
-- issue a press release correcting the April 30, 2013 Caldera release ...stating that the original release is retracted with all property books and records (including all exploration data) related to the Marjan property transferred to Global Gold and that neither Caldera nor its successors retain rights to the Marjan mine in Armenia and shall pay Global Gold $50,000 plus $100 per day for every day following issuance of this Final Award that such correcting release is not issued;
-- Caldera did not spend the minimum $1 million threshold necessary to be eligible for an NSR Royalty interest and therefore Caldera has no NSR Royalty or any other interest in the Marjan property;
-- the $150,000 which Caldera paid to Global Gold was not pursuant to the JV Agreement (which did not become effective) but pursuant to the December 2009 Agreement therefore Global Gold is not obligated to make any payments to Caldera;
-- pay Global Gold $115,000 for Caldera's refusal to turn over 500,000 shares of stock in 2010;
-- pay Global Gold $3,174,209 for Caldera's failure to make agreed payments to Global Gold;
-- pay Global Gold $577,174 for legacy governmental liabilities concerning the Marjan property and shall indemnify and hold Global Gold harmless (including attorney fees) from any governmental claims or liabilities associated with the time they control the seal of the Marjan Mining Company;
-- pay Global Gold $967,345 for violating Paragraph (1) of the Final Partial Award requiring turnover of property and [for] interference in Global Gold's development of Marjan and shall relinquish the portions of the Marjan West license which overlap or in any way impinge on Marjan;
-- Caldera is liable for defamation and tortious interference with contractual and business relations with regard to Global Gold and its related personnel and so shall (i) pay Global Gold $3 million in compensatory damages..., (ii) pay Global Gold $1 million in punitive or exemplary damages..., (iii) remove all the materials and websites controlled in any way by them which were admitted as exhibits on defamatory publications in this case from the internet and other locations, (iv) remove and be permanently enjoined from using Global Gold's trading symbol without permission; (v) not share those materials with others or arrange to have them posted anonymously or otherwise- (vi) independently, ... Global Gold and those who have been named by Caldera and Bill Mavridis in the admitted exhibits on defamatory publications as well as their attorneys [are granted] the authority to contact internet service providers, search engine firms, social media sites, stock discussion boards (including but not limited to Google, Yahoo, Facebook, Twitter, Stockhouse, Investor's Hub and Bing) to use this Final Award to remove the material as defamatory;
-- for the breaches of the Confidentiality Stipulations and Orders in this case, ...all publications of "confidential" or attorney eyes only material [shall] be removed from the internet and any other locations and that their substance not be republished and ...Global Gold and its attorneys [are granted] the authority to contact internet service providers, search engine firms, social media sites, stock discussions board (including but not limited to Google, Yahoo, Facebook, Twitter, Stockhouse, Investor's Hub and Bing) to use this Final Award to remove the material-- Caldera shall pay Global Gold for $100 per day every day that persons associated with Caldera remain in violation of the Confidentiality Stipulation and Order following the issuance of this Final Award including for each day until full disclosure of all emails and other communications with third parties that the information was shared with or discussed;
-- pay $1,822,416 for attorney fees and costs;
-- reimburse Global Gold $88,269 paid to the arbitration association and for the compensation and expenses of the arbitrator;
The Final Award was certified for purposes of Article I of the United Nations New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards and for purposes of the Federal Arbitration Act.
Despite having raised substantial funds to pay Global Gold and develop Marjan as agreed, Caldera began to renege on its commitments in late summer of 2010, and attempted to acquire Global Gold's other mining assets in Armenia. "No accounting or substantiation of Caldera's expenditures has been provided.... Global Gold has provided evidence of how much Caldera's non-payment has damaged its operations and ability to function. In addition, Global Gold provided evidence that Caldera and Bill Mavridis understood that non-payment was damaging to Global Gold's operations and actively tried to take advantage of that to acquire Global Gold's assets and harm it."
Regarding the defamatory attacks, the Final Award also states: "the evidence showed that Caldera and Bill Mavridis were acting with spiteful intent by publishing defamatory materials through the course of the arbitration in an attempt to create leverage for their own commercial advantage to harm the Global Gold side and acquire their mining assets at reduced prices. (Exs. 413 and 414). I have also been able to observe the demeanor of the concerned parties and find that the Caldera side acted with actual personal malice toward the Global Gold side, to the extent that a security guard had to be included at several points during the hearings based on the behavior of Bill Mavridis. While, some of the publications such as those making complaints to the SEC, PCAOB and other regulators purport to be in the public service, I find that they were issued maliciously to gain improper personal and business advantages, and without any regard to the truth."
"Further, the undisputed evidence showed that there is no difference between what Caldera published on its website, www.calderaresources.com and what Bill Mavridis published on his personal and other websites including the www.gbgd-armenia-mining-blogspot.com site and the www.protestgbgd.com site. While in some instances he claimed to be acting as a whistleblower and in others as a goodwill ambassador of an Armenian environmental organization, he was in fact acting in his and Caldera's own commercial and personal interests and in bad faith. The Caldera side's unauthorized use of the Global Gold trading symbol in internet addresses, search terms and other places was improper and designed with the intent to more broadly spread defamatory material. The scope of these defamatory attacks truly is too great to recount in detail here.... These publications have defamed the following: Van Krikorian, Jan Dulman, Ashot Boghossian, the members of the Global Gold Board (including Ian Hague, Harry Gilmore, Drury Gallagher, Lester Caesar, Nicholas Aynilian), Firebird Management, Brian Cousin, Hrayr Ghoukassian, the RBSM accounting firm, and others named in the admitted exhibits."
The Marjan mining property is located in Southwestern Armenia, along the Nakichevan border in the Syunik province, and Global Gold now holds a mining license to the 19.6 sq. km property valid until April 2033. The property is divided into central and northern sections with a saddle section in between. 60 km of road have been created on the sites by Global Gold alone. Global Gold has worked in Armenia since 1995, and further information is available on the Global Gold Corporation website www.globalgoldcorp.com.
Forward-looking Statements -- To the extent that statements in this press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, future collaboration agreements, the success of the Company's development, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made.
Global Gold Corporation www.globalgoldcorp.com is an international gold mining, development, and exploration company headquartered in Rye, NY with operations in Armenia and Chile. The Company is committed to building shareholder value and maintaining social and environmental responsibilities.
CONTACT: Global Gold Corporation
International Corporate Center at Rye
555 Theodore Fremd Avenue, Suite C208
Rye, New York 10580
Tel: 914-925-0020
Fax: 914-925-8860
Email: ggc@globalgoldcorp.com
www.globalgoldcorp.com
http://www.globenewswire.com/newsroom/ti?nf=MTMjMTAxMDc4NTIjMTYwNTc=
BMAV1
11 years ago
WOJE
You should keep away from any deals with GBGD to pump this stock....lots of crap here that you won't want to step in and get your paws full of poop....
GBGD lost their GETIK Gold project in Armenia because of non performance of their License agreements but have failed to file an 8-K to disclose this material event. Who knows, but if they can lose this license, then there other two licenses are at risk too...Marjan and Toukhmanuk...because of non-performance of under their License Agreements.
Read my last blog: toukhmanuk.blogspot.ca/2014/02/global-gold-loses-getik-exploration.html
Global Gold Loses GETIK EXPLORATION LICENSE but says nothing, WHY?
You heard it here first......
Saturday, February 22, 2014
Global Gold Corp's (GBGD) subsidiary GETIK LLC, has been issued a TERMINATION DECREE, cancelling their two Gold/Copper Exploration Licenses in Armenia, referred to as the Getik project.
The Termination Decree was signed into force by MINISTERIAL DECREE N 04-A and signed by the Minister of Energy and Natural Resources of the Republic of Armenia, Minister Armen Movsissyan.
Unofficial Translation of Decree N 04-A - MENR
[SEAL]
MINISTRY OF ENERGY AND NATURAL RESOURCES
MINISTERIAL
DECREE
22.01.2014 year N 04-A
On the application for extending permission deadlines provided to "Getik Mining Company" LLC in Getik River "Amrots" gold manifestation and "Aygut" copper manifestation of RA Gegharkunik Province, ore geological investigation 22.05.2012 year number Geological Exploration Permit– 29/034 (formerly No. 85) and Geological Exploration Permit -29/035 (formerly No. 86) .
Examining the "Getik Mining Company" LLC (hereinafter referred to as Company) provided for Getik River "Amrots" gold manifestation and "Aygut" copper manifestation of RA Gegharkunik Province, geological mineral exploration right dated on 22.05.2012 and Geological Exploration Permit– 29/034 (formerly No. 85) and Geological Exploration Permit- 29/035 (formerly No. 86) permit application 06.12.2013 - No G-28/128 of the company on 2 year renewal period of 22.05.2012 year number Geological Exploration Permit– 29/034 (formerly No 85) and Geological Exploration Permit -29/035 (former No 86) and comparing them with the requirements of contracts 06.11.2012 - No PV-034 and No PV-035 signed between the company and the authorized body, found that in accordance to the documents submitted by the company (33 pages) the Company did not implemented work plan scheduled activities for a part of activities in accordance with the above-mentioned contracts.
In particular, the Company did not make at all geophysical sampling and mapping activities and not implemented column drilling volumes approximately by 90 percent, which has already led to non fulfillment of contractual schedule failure: filing implementation of contractual obligations (proposed schedule). Therefore, there is a base according to Mining Code, 42 Article, 3 Point for not prolong validation permit period provided to mining company for geological investigation of subsoil mineral extraction, because the mining company requested an extension due to the breach of contractual duties.
In addition, by the application request for prolonging of Geological Exploration Permit -29/034 permission on investigation (Amrots area), refusal from separated non prospective site required by the legislation (not less than half of the allocated area) to do not comply with the law by refusing the space share (portion), which is also in accordance with the Mining Code, Article 42 § 4, is a base for not prolonging the period of permit validity.
Besides these, the Company presented surface of "Amrots" gold manifestation by 2.2 km3 out from the area given to them in the past, which should be considered as an expansion of mining rights for which the company did not apply and did not present documents required by the Mining Code, Article 43.
Thus, guided by the Mining Code 30 Article 5, paragraph 1, item 6, Article 42, paragraph 3 and 4 parts:
I HEREBY
1. Reject the application on extending for 2 years permits period of "Getik Mining Company" LLC in Getik River "Amrots" gold manifestation and "Aygut" copper manifestation of RA Gegharkunik Province, ore geological exploration 22.05.2012 year of Geological Exploration Permit– 29/034 (formerly No 85) and Geological Exploration Permit -29/035 (formerly No 86);
2. Define that geological exploration for the purposes of minerals extraction 22.05.2012 of Geological Exploration Permit-29/034 (formerly 85) and Geological Exploration Permit-29/035 (formerly 86) permits and sub-soil investigation of minerals for extraction purposes 06.11.2012 year No PV-034 and No PV-035 and the end of validity time of mining contracts 10.12.2013 year, terminate the right on Getik River "Amrots" gold manifestation and "Aygut" copper manifestation geological mineral investigation given to "Getik Mining Company" LLC in RA Gegharkunik Province, and resolve (terminate) mining contracts 06.11.2012 year No PV-034 and No PV-035;
3. This order may be appealed by the administrative order after 6 months period of its entry into force or by court in 2 years period of its entry into force.
4. The control of this order is reserved to the Chief of Staff of the Ministry of Energy and Natural Resources.
Armen Movsisyan
While the translation is a little rough, it should be clear from reading that GGC's subsidiary, GETIK LLC;
1. Applied for an extension for its two exploration permits, Geological Exploration Permits 29/034 and 29/304 (formerly referred to as exploration permits No. 85 and no. 86) on December 6, 2013 under application number No G-28/128;
2. The application was rejected and the exploration permits terminated along with the exploration license agreements, by ministerial decree on January 22, 2014.
3. Termination was the result of the Company failing to fulfil its contractual obligations under Exploration License Agreement PV-034 and PV-035 by failing to implement their work plan and scheduled activities as filed (33 page document) in accordance to the license agreements; In particular the Company failed to perform required drilling volume by 90%, surface exploration/trenching and mapping.
But why has Mr. Van Krikorian, Chairman, Director and Corporate Counsel for GBGD failed to file a form 8-K disclosing this material event to the PUBLIC?
According to SEC rules, a Form 8-K must be filed within 4 business days of knowledge of a material event. It is now 30 days since the issuance of this Ministerial Decree, terminating GBGD's exploration license on the GETIK project.
Why has Mr. Van Krikorian failed to report this? Is it because he does not consider it important? Does he consider that losing one of GBGD's gold exploration license immaterial?
OR, is GBGD and Mr. Van Krikorian trying to hide the fact, that IF the Government of Armenia can TERMINATE the GETIK license for non-performance, can they also TERMINATE GBGD's TOUKHMANUK and MARJAN mining license too?
It is a fact, that GBGD and Mr. Van Krikorian have been desperately trying to mislead investors, through GBGD's SEC filings that the TOUKHMANUK and the MARJAN mining projects are seriously in default of their contractual obligations as filed under Toukhmanuk Mining License Agreement No. 287 and Marjan Mining License Agreement No. 144.
OR is it because GBGD and Van Krikorian are trying to hide this fact from their Joint Venture partner Consolidated Resources Armenia (CRA), who they have partially embezzled and misappropriated $7 million dollars of funding for the JV project?
This misappropriation of funds committed by Mr. Van Krikorian and his CFO, Mr. Jan Dulman, includes over $500,000 which was earmarked for exploration on the GETIK project in 2011, which clearly has been misappropriated 100%, and is now evidenced by the fact that GETIK licenses has been TERMINATED by Ministerial Decree.
GBGD's Principal Executive, Mr. Van Krikorian, and his CFO, Mr. Jan Dulman, have gotten away too long for failing to report material and adverse events affecting GBGD's investments in Armenia because there is no transparency with what happens in Armenia due to investor's lack of understanding Armenian language and understanding local regulations. Mr. Van Krikorian and Mr. Jan Dulman have failed to fully disclose in their SEC filings the process of obtaining and maintaining license and permits in Armenia, and have purposefully done so to avoid disclosing material adverse events.
Investors and Joint Venture investors rely on GBGD's SEC disclosures. If all the material facts were disclosed in GBGD's SEC filings, as they should be by law, investors would see the RED flags and not rely as much on Mr. Van Krikorian's and GBGD's deceptive disclosures. If I knew 10% of what I discovered of the status of GBGD's crumbling investments in Armenia, I would have never entered in a deal with them on the Marjan project.
I urge the US SEC, PCAOB and the department of Justice, Foreign Corrupt Practices Act (FCPA) division to investigate GBGD, Mr. Van Krikorian and stop this serial fraudster from continuing to make willfully false and misleading statements and omitting material facts in his SEC filings to deceive his investors and using corruption and undue influence in Armenia to silence his detractors.
BMAV1
11 years ago
Van Krikorian and GBGD Accused of Misappropriating Funds From Investor
It appears that a disgruntled employee of Global Gold Corp. (otcmarkets: GBGD) from Armenia, (which there are many of) decided to expose his former employers and dropped off some files to my attention. In that file was a copy of a "Derivative Action Complaint" which was prepared by Consolidated Resources Armenia (CRA), GBGD's latest victim.
The COMPLAINT outlines that Mr. Van Krikorian, the President, Director and Corporate Counsel of GBGD, and Mr. Ian Hague, independent director and controlling shareholder of GBGD (and founder of FireBird Management) conspired to defraud its investor, CRA, of $5MM capital investment and $2MM Note and retain the benefit of the capital infusion for GBGD. Evidence of this complaint supports what I discovered in the past, that GBGD (aka "GGC") was trying to defraud CRA out of their $7MM investment made on the Toukhmanuk and Getik gold properties in Armenia. CRA owns 49% of the Joint Venture known as Global Gold Consolidated Resources (GGCRL), and GBGD ("GGC") owns 51%. Mr. Ian Hague and Mr. Van Krikorian abused their powers as directors of GGCRL and GBGD in order to commit the worst kind of fraud – specifically blocking receipt by GGCRL and depriving CRA investors of all of its Armenia mining assets while seeking to extort millions of dollars in cash and equity illicitly from CRA in exchange for allowing the obligatory asset transfer to occur.
This COMPLAINT was prepared on behalf of CRA by DORSEY & WHITNEY LLP, which is one of America's top 100 LAW FIRMS.
A full copy of the complaint is posted at here
Some of the more egregious items outlined in the COMPLAINT accuse Mr. Ian Hague and Mr. Van Krikorian of the following:
"Krikorian and Hague have refused without justification to bring about the transfer of key assets to GGCRL, assets essential for it to conduct its business and deliver shareholder value. Krikorian and Hague have failed to assist in the transfer of these assets, as a means to coerce egregious employment terms for Krikorian and to alter the terms of the joint venture for the benefit of GGC and themselves personally, at the expense of the other joint venture partner, CRA. Krikorian and Hague have perpetuated a series of improper actions undermining GGCRL’s business, including:
(i) concealment and misrepresentation of substantial GGC liabilities, including tax liabilities that posed material risks to the assets to be transferred to GGCRL;
(ii) fraudulent transfers of corporate funds to personal bank accounts of GGC officers;
(iii) misappropriation and misuse of corporate funds, and
(iv) self-dealing. (2)"
"Rather than take steps as directors of GGCRL to ensure that the Closing took place, Krikorian and Hague have caused GGC to block the Closing and have attempted to extract more value for GGC and themselves, at the expense of CRA and GGCRL. (62)"
"Krikorian even expressly indicated at a GGCRL board meeting that he and Hague intend to persist in blocking the Closing until they “get what they want”—simply ignoring their duties as directors of GGCRL. (64)"
"Throughout these delays, Krikorian has repeatedly sought to negotiate an employment agreement with GGCRL for himself, with terms egregiously favorable to him personally. In particular, as a portion of his executive compensation to be paid by GGCRL, Krikorian has demanded that he personally receive a minimum of 5% of the shares of GGCRL in addition to significant salary increases, annual bonuses, and a golden parachute providing for a huge windfall payment of accelerated compensation equating to millions of dollars (66)"
"and with Hague’s full knowledge and unconditional support, Krikorian has blocked completion of the Closing and both prevented and severely damaged the Public Listing process in part as a ploy to attempt to force GGCRL to agree to Krikorian’s egregious terms of employment. (67)"
"Throughout the delays, acting in their capacities as directors of both GGC and GGCRL, Krikorian and Hague have attempted to force a wholesale alteration of the material terms of the Joint Venture Agreement, to secure terms more favorable to GGC, at the expense of CRA. (68)"
"Holding out for egregious and damaging employment terms and a wholly reshaped joint venture deal, Krikorian and Hague also refused to go forward with negotiations on two reverse merger opportunities, which would have brought significant value to GGCRL and its shareholders. (69)"
"Krikorian and Hague systematically delayed the Closing at every step laid out in the Joint Venture Agreement. Krikorian made it an overt strategy to abuse his role and signing authority as interim executive chairman, using the routine signing of GGCRL corporate documents necessary for developing its business as bargaining chips to exact special favors for GGC and Hague and himself.( 72)"
"Krikorian and Hague have stated that, by preventing the Closing of the joint venture, they intend to retain the benefit of the capital infusion GGC received from CRA—which made it possible for GGC to stay in business—(76) "
"As a part of their ongoing effort to avoid tax liabilities to the Armenian government, upon information and belief Krikorian and Hague have supported and encouraged fraudulent transfers of GGCRL funds. In particular, Krikorian and Hague have knowingly transferred corporate funds to personal bank accounts—including without limitation accounts in the name of the Country Manager, Ashot Boghossian—in order to evade Armenian tax authorities. (81)"
"Krikorian and Hague misappropriated and misused substantial corporate funds, repeatedly using funds advanced by CRA for purposes other than those disclosed. For example, a substantial portion of the $5 million advanced by CRA, as well as the $2 million of addition interim funding, was intended to be used for plant expansion and balance sheet cleanup. Instead, Krikorian and Hague directed GGC to use a substantial portion of those $5 million of funds for other unapproved purposes, and diverted substantial portions of those funds to GGC obligations, to the detriment of GGCRL and its shareholders, all while blocking the intended plant expansion and balance sheet cleanup. In other words, Krikorian and Hague have authorized GGC to use those funds for unapproved purposes instead of forcing GGC to use those funds as otherwise agreed, or have themselves blocked GGCRL from using those funds for high-priority purposes. (85)"
BMAV1
11 years ago
IAN HAGUE’S DUBIOUS GBGD SHAREHOLDINGS & SELF-DEALING DEPRIVES FIREBIRD LIMITED PARTNERS AND GBGD SHAREHOLDERS OF POTENTIAL INVESTMENT RETURNS
Link ot original BLOG
In early 2008 things were not going so well for Global Gold Corp. (otcmarkets: GBGD) in Armenia and they were running out of money, so Mr. IAN HAGUE, the "independent director", became GBGD's personal banker.
From February 7, 2008 to December 28, 2009, Mr. IAN HAGUE made personal loans totalling $4,230,000 at 10% interest, convertible into GBGD shares. [The conversion for $3,210,367 of these loans was set at a floor of $0.43 per share.] These loans were from Mr. Ian Hague's "personal cash", not cash from the managed funds of FireBird Management.
Below are the details of the Director Loans made by IAN HAGUE:
February 7, 2008. . . . . . . . . . . $ 260,000
March 10, 2008. . . . . . . . . . . . $ 280,000
April 14, 2008. . . . . . . . . . . . . $ 300,000
May 12, 2008. . . . . . . . . . . . . $1,500,000
July 7, 2008. . . . . . . . . . . . . . . $ 800,000
------------------------------------------------
Total $3,140,000
Total+accrued intrest to July 31 $3,210,367.12
The loans above were consolidated in to one loan totalling $3,210,367.12, as of July 31, 2008, as further outlined in the Chilean Mining Asset Sale Agreement. (See GBGD Letter to Ian Hague and Don Laguardia related to Chilean Mining Assets Sale of July 31, 2008 - link to SEC Filing).
The Acquisition of the Chilean Assets was terminated on September 16, 2008 (see 8-K - Termination of a Material Definitive Agreement - link to SEC filing) and Mr. Ian Hague's advances of $3,210,367 were automatically converted to loans, carrying 10% annual interest with an option to convert the entire loan to GBGD stock at no less than $0.43. The loans made by Mr. Don Laguardia's, totalling $150,000, were never returned by GBGD and its principle executive, Mr. Van Krikorian, claiming it was forfeited.
On September 23, 2008 Mr.Ian Hague made an additional loan to bring the new consolidated loan to $3,500,000 as outlined in the RE: Loan to Global Gold Corporation and Royalty Letter (link to SEC filing)
September 23, 2008. . . . . . . . . . $ 289,632.88
---------------------------------------------------
Total $3,500,000
The strangest thing about this new loan of $289,632.88 is that Mr. Van Krikorian and Mr. Ian Hague negotiated new terms for the advances, instead of 10% interest per annum and a conversion to GBGD shares at a floor price of $0.43, the loan was changed to 10% interest per annum, no conversion and 1.75% Net Smelter Royalty (NSR) on gold produced from GBGD's interest in the Chilean Assets.
Mr. Ian Hague went from attempting to acquire GBGD's Chilean Assets for $5,000,000 and paying Global Gold a 2.5% NSR, to becoming a lender to GBGD and receiving a 1.75% NSR.
Assuming that there are 5,000,0000 ounces of gold on the property, as GBGD believes, and assuming the price for gold at $800 oz, Mr. Ian Hague can now potentially receive more than $35,000,000 in cash flow from this 1.75% NSR over the life of the mine. That's a very rich return for just making an additional $289,632.88 loan, for anyone, but especially for an "independent director" of GBGD.
If this is not the definition of self-dealing, I do not know what is. The rules for Private Companies are a little different, but public companies and their directors have a higher set of standards to meet when taking into consideration and accepting such deals. This deal negotiated between GBGD CEO, Mr. Van Krikorian, and the "independent" director, Mr. Ian Hague, to give away a 1.75% NSR of their Chilean Assets, for receiving an additional loan of $289,632,88, smacks of self-dealing.
Mr. Ian Hague continued to act as the personal banker for Global Gold while continuing to be elected "independent director". Including the new consolidated loan of September 23, 2008 of $3,500,000, Mr. Ian Hague made additional director loans to GBGD for a grand total of $4,230,000 of loans from his personal account.
September 23,2008 . . . . . . . . . . $3,500,000
May 13, 2009. . . . . . . . . . . . . . . $ 500,000
September 14, 2009. . . . . . . . . . $ 50,000
October 29, 2009. . . . . . . . . . . . $ 60,000
November 12, 2009 . . . . . . . . . . $ 10,000
December 28, 2009 . . . . . . . . . . $ 110,000
------------------------------------------------
Total Loans $4,230,000
TOTAL TO OCT. 25, 2010 + INTEREST . . $5,052,262
On October 25, 2010 Mr. Ian Hague converted his loans plus accrued interest, totalling $5,052,262 to shares of GBGD at a shocking conversion price of $0.15 per share (see 8-K Sec filing of October 19, 2010), when his own FireBird managed funds purchased shares at an average price of $0.398
Mr. Ian Hague's loan of $3,210,367.12 related to the Chilean Agreement of July 31, 2008, had an original conversion price of $0.43 per share. This should have provided Mr. Hague with 7,465,970 shares of GBGD and an additional 5,481,747 on the balance of the loans and accrued interest, for total conversion of 12,947,717 GBGD shares.
Instead Mr. Ian Hague received an additional 20,734,031 GBGD shares for total consideration of 33,681,748 GBGD shares pocketing an extra shares valued at $3,110,105.
THIS EQUATES TO A 160% INCREASE IN THE NUMBER OF SHARES BEING ISSUED TO MR. IAN HAGUE. SPECIFICALLY, 20,734,031 EXTRA SHARES WERE ISSUED TO MR. IAN HAGUE, HIGHLIGHTING HIS DUBIOUS GBGD SHAREHOLDING AND GENEROUS NSR OF 1.75% FOR MAKING AN ADDITIONAL $289,632.88 LOAN ON SEPTEMBER 23, 2008, ALL WHICH CAUSED ENTIRELY AVOIDABLE YET DEVASTATING DILUTION OF 48% (FROM 40.98% to 21.29%) TO THE GBGD SHAREHOLDING BENEFICIALLY OWNED BY FIREBIRD LIMITED PARTNERS.
Furthermore, Between Mr. Ian Hague's personal shareholdings and the shareholdings of the FireBird Funds, Mr. Ian Hague, GBGD's independent director, controlled approximately 64% of the outstanding shares of GBGD.
Mr. Ian Hague became a controlling shareholder and wielded considerable power in GBGD's affairs. Mr. Ian Hague was now "too close to management" (ie Mr. Van Krikorian) to be considered "independent" even though he still sits as an independent director on the Board of Global Gold Corp..
BMAV1
11 years ago
TO THE BOARD OF GLOBAL GOLD CORPORATION AND ITS SHAREHOLDERS
The Toukhmanuk Gold Mine has been challenged by local communities and various Environmental NGO's. I believe Mr. Ashot Poghossyan and Mr. Van Krikorian have been under-reporting to the Board and its shareholders of the challenges and material facts related to this project.
I have provided articles published by ECOLUR below. From reading these articles it is clear that:
1. The Local Community and the MELIQ Village opposes the Tailings dump/dam construction
2. Global Gold falsified minutes of the Local Community Meeting village and tried to claim the community accepted the dam
3. Complaints have been filed with authorities regarding the falsification of the minutes in March 2013
4. New Meeting rejected the Application of the Tailing Dam
5. The Area for the proposed tailings dam is in a 9 magnitude earthquake zone
6. There are apparently heavy metal contamination in the are area due to the activities of Mego-Gold
7. NGO representing 50 groups have filed a letter with the President of Armenia's Office opposing the project
8. NGO have filed criminal complaints against Global Gold/Mego-Gold
Its time that your company change its local management and remove Mr. Van Z. Krikorian as officer of the company for failing to provide timely information on the material events in Armenia. Failure to report these material events in 10K, 10Q and 8K filings is a serious breach of securities legislation potentially placing all directors of Global Gold at risk.
I have also provided to you proof that Global Gold has been keeping two accounting records in Armenia related to the mining at Toukhmnauk. Global Gold has over reported mining levels by 104% including gold grades and gold production. This information clearly puts in question the valuation of the inventory of ore and concentrate on the balance sheet of Global Gold valued currently at $559,525 on December 31, 2012.
As usual I have filed this complaint with the SEC Enforcement and the PCAOB.
Sincerely
Bill Mavridis
514-813-9200
ARTICLES: http://www.ecolur.org/en/
{ Note: ECOLUR is and Armenia Language NGO based in YErevan, Armenia. The English Translations are provided by ECOLUR}
Soil of Meliq, Rya Taza and Miraq Villages is Polluted with Heavy Metals and Toxic Elements from Tukhmanuk Gold Mine
14:02 June 13, 2013
EcoLur
Heavy and exotoxic elements such as As, Sb, Pb, Cd, Cu, Mn, V, Cr, Co, Ni, Zn, Sn, Bi are spread from Tukhmanuk gold mine via different pipes, which get accumulated in Meliq, Rya Taza and Miraq Villages, Aragatsotn Region, and other land areas, as well as in bottom sediments of Halavar and Qasagh Villages. This is what “Ecochemical Analysis of Tukhmanuk zone land and river bottom sediments” work says implemented by “ArmEcoMonitoring” SNCO Deputy Director Seyran Minasyan on “BLEJAN” NGO’s order.
According to this work, the total concentrations of potentially hazardous 17 elements and metals (Sr, Ba, Mn, V, Cr, Co, Ni, Fe, Cu, Zn, Sn, Bi, U, As, Sb, Pb, Cd) have been determined in the samples. It turned out that the concentration of the studied elements of the observation sites located above Meliq Village and below Miraq Village and interim territory of Rya Taza-Meliq exceeds MCP by 12.-2.5 times.
Reminder: Tukhmanuk gold mine is developed by “MegoGold” LLC.
EcoLur Opinion on Tailing Dump Construction Project in Meliq Village
15:16 April 25, 2013
EcoLur
“EcoLur” Informational NGO has sent its opinion on Tailing Dump Construction Project in Meliq Village to the Ministry of Nature Protection.
The opinion says, “The tailing dump construction project in Meliq village proposed by Mego Gold Company should be turned down on the following grounds: the project doesn’t reflect the factual risks and the project is isolated from complex issues of extraction, production and maintenance of industrial wastes.
The tailing dump should be the third one in the territory of Meliq village. It should collect the tails of Mega Gold gold-extracting production. The plant processes gold-bearing ore of Tukhmanuk gold mine. The data submitted in the project about the composition of tails don’t comply with the composition of ores, the data about the presence of toxic metals and toxic elements left after gold extraction are missing in the project. The assessment of background pollution of water and land areas caused by two operating tailing dumps is also missing in the project. It’s possible to indirectly judge about the pollution based on the results of the analysis carried out by the Center for Ecological Noosphere Studies of NAS RA presented to the public and by the research articles about the composition of ore in Tukhmanuk mine. The data about the probable impact on human health are missing. As Health Ministry response shows their specialists haven’t carried out any examinations in the village and they relied exclusively on the project documentation, which doesn’t reflect the real situation.
What about environmental expertise experts’ opinion, in the course of specialized hearings at Nature Protection Ministry held on 19 April, they confirmed that they relied not on the studies of the situation, which already has sharply negative background, but on the data in literature, i.e. they don’t handle the situation. The minutes of the public hearings held in Meliq Village on 27.11.2012 don’t comply with what public representatives and the locals said at the hearings proved by the video recording made by EcoLur in the course of the public hearings. In the course of the discussions held at Nature Protection Ministry on 19 April 2013 Mego Gold Company Director Ashot Poghosyan stated many times when answering to the questions that the final replies to the questions about risks raised by public can be given only when a new project for Tukhmanuk mine development will be submitted.
We propose to consider the problem of keeping industrial wastes of Tukhmanuk mine development in complete documentation package, where not only the tailing dump project will be submitted, but also the projects of mine development and gold-extracting production.”
“EcoRight” NGO Demanding Criminal Investigation for Tukhmanuk Mine Tailing Dump Project
14:21 March 12, 2013
EcoLur
“EcoIravunq” NGO (“EcoRight”) has sent a letter to Public Prosecutor Aghvan Hovsepyan on crime commission, signed by NGO Chairman Arthur Grigoryan. The letter particularly says, “On 27 November 2012 Mego Gold Company organized public hearings in Meliq Village, Aragatsots Region, on the construction project of the third tailing dump for the disposition of wastes of Tukhmanuk mine it develops. The project mentions that the tails contain the following chemical compounds, SiO2 – 46,23%; AL2O3 – 10,81%; MgO – 5,17% ; TiO2 – 0,82 %; CaO –6,41%; MnO – 0,15%; Fe2O3 – 6,4%; FeO -3,62%, but the project doesn’t say a word about heavy metals. The Center for Ecological-Noosphere Studies conducted laboratory analysis, which says that the tails contain arsenic, cadmium and lead. The divergence of the data with the project causes to suspect that the company and Lernametalurgiakan Institute intentionally misled the public by concealing the composition of the tails and their impact on the community and people’s health. The aforementioned facts point out the existing deviations of mine development from the confirmed project, which may contain the features of Articles 281 and 284 of the Criminal Code of Armenia. We think that criminal investigation needs to be carried out to reveal the creditability of the information presented in the project and to reveal to what extent the company and Lernametalurgiakan Institute intended to mislead public with this information, to what extent the activities of Tukhmanuk mine development deviates from the confirmed project and whether there are features of Articles 281 and 284 of the Criminal Code of Armenia.”
Public Demanding to Annul Minutes of Hearings on Tailing Dump Construction in Meliq Village
19:34 March 11, 2013
EcoLur
Public representatives have applied to Nature Protection Ministry demanding to annul the minutes of the hearings on the construction project of a new tailing dump in Meliq Village. The tailing dump will be the third, which Mega Gold Company, the developer of Tukhmanuk gold mine, intends to construct in the village. The application particularly says, “…In the course of the public hearings on 27 November, Meliq Village Head stated he would present the opinion of the village a month later. Nevertheless, the minutes of the hearings are dated 27 November and signed by the village head and company director. The minutes say, “The village has no objections in regard with the construction of a tailing dump…A decision was reached to approve the environmental part of Tukhmanuk dressing plant…” It’s falsification, as during the hearings many opinions were expressed about the impermissibility of constructing the third tailing dump in the village. The minutes don’t reflect the viewpoints of the villagers and public representatives. The company representatives and the project developer, who worked on the project development by company’s order, expressed their positive opinions. We demand to annul the minutes of the public hearings held by Mega Gold Company on the construction project of a new tailing dump for Tukhmanuk dressing plant in Meliq Village,” the application says. The application is corroborated with the minutes of the public hearings for 27 November and the video recording.
Public Environmental Alliance to Armenian PM: Asking to Stop “MegoGold” Company Activities
12:37 January 18, 2013
EcoLur
Public Environmental Alliance, an alliance of 50 NGOs, has addressed a letter to Armenian PM Tigran Sargsyan, which particularly says, “On 20.11.2012 the Public Environmental Alliance has filed a proposal to Nature Protection Ministry, the National Assembly Standing Committee on Agriculture and Environment to set up a working group in regard with the activities of “MegoGold” LLC in Meliq Village. We would like to ask you to assign Nature Protection Ministry, Health Ministry and Ministry of Emergency States, in the frames of their terms of reference, to conduct examination of the situation and to present the findings to the public…At present “MegoGold” Company intends to construct the third tailing dump in Meliq Village. We are asking to stop the activities of the company till the assessment of the situation on the spot.” The proposal filed to Nature Protection Ministry dated on 20.11.2012 is attached to the letter, “…According to the project (construction of a tailing dump), Meliq Village is located in the zone of nine-point seismic risks.” “MegoGold” Company intends to construct a new tailing dump in the territory of 7 ha…The company is the subsidiary of “Global Gold” Company and has been developing Tukhmanum gold mine since 2006. Ore dressing is conducted directly in the territory of Meliq Village. The village itself is in a hard situation. Numerous breakdowns of operating tailing dumps has led to the default with the water pipe of the drinking water in the village, because drinking and irrigation waters get mixed…The dust blown off the tailing dump, accumulates on the ground, which villagers cultivate and contaminate them with heavy metals. All this lead to decrease in crop productivity and caused huge damage, which hasn’t been studied and assessed. According to the villagers, they incur material and moral damage from the development of the mine and the tailing dump. Villagers’ health has been deteriorated, birth rate had reduces, cancer diseases have increased. The villagers have filed complaints to the state bodies, but to no avail,” the letter says.
Public Thinks that Mego Gold Company Should Present New Complex Project of Tukhmanuk Mine Development
12:44 December 04, 2012
EcoLur
The NGOs having taken part in the public hearings on the construction project of the tailing dump of Mego Gold Company in Meliq Village on 27 November think that a new complex project should be presented on the development of Tukhmanuk gold mine.
In their statement to Aram Harutyunyan, Minister of Nature Protection, they noted, “On 27 November 2012 “Mego Gold” Company organized public hearings on the construction project of a new tailing dump in Meliq Village, Aragatsotn Region. The public hearings were participated by Meliq villagers and Village Head Hakob Mkrtchyan, “Mego Gold” LLC Director Ahsot Poghosyan, “Mego Gold” LLC Deputy Director Henrikh Mkrtchyan, Nature Protection Ministry “Environmental Expertise” SCNO Expert Laura Balayan, Head of Environmental Department of “Lernametalurgiakan Institute” Hovik Nikoghosyan, public representatives – Greens Union Chairman Hakob Sanasaryan, “Shogher” Union Chairman Hasmik Aslanyan, Yerevan Aarhus Center Coordinator Silva Ayvazyan, Aparan Aarhus Center Coordinator Natalya Manukyan, Lawyer of Aarhus Centers Arthur Grigoryan, expert-hydrologist Qnarik Hovhannisyan, Editor of http://www.ecolur.org/ Victoria Burnazyan and mass media. Nevertheless, the minutes of the public hearings were not drawn up on the spot.
The participants put their signatures on a separate sheet of paper, which should be attached to the minutes. Meanwhile, a part of the participants, such as the representative of the Environmental Expertise Laura Balayan and Developer Hovik Nikaghosyan left the hall before the end of the hearings. Meliq Village Head Hakob Mkrtchyan stated that the villagers will express their opinions within a month.
We, public representatives, were not acquainted with the text of the minutes and think that the procedure of hearings minutes taking was violated, and consequently, the minutes, as an official document, should be recognized null and void.
Then, under the project:
1. We consider it necessary that Mego Gold Company to meet the demand of the local population and introduce it into the project:
a) the plan of reclamation of two tailing dumps with diagrams and cost of actions. If the company intends to extract the gold it contains, the activities of tail processing should also be included into the project.
b) an alternative of Tukhmanuk gold mine development in closed method,
c) to estimate the damage caused to farms in Meliq Village or plan of actions for consequence minimization,
d) in case of production expansion, to present a plan for forced resettlement.
2. In the course of the public hearings in Meliq Village on 27 November, Company Director Ashot Poghosyan stated that there are plans to expand production and mining volumes, while the issue of new tailing dumps may arise. For the purpose of correct assessment of risks for hazardous objects and supposed actions of Mego Golf Company we think it’s necessary for the company to present a complex project, where the integral part of the project will be the construction of new tailing dumps. The project should also present measures on prevention of environmental pollution.
3. In the presented project the components of tails don’t comply with scientific data (Sh. Khachatryan, “Geochemical characteristics of Tukhmanuk Gold Mine (Aragatsotn Region)”, “Procs of Yerevan State University, 3 (223), 2010). We would ask the developer company to submit the methodology and experimental findings.
4. Developer Hovik Nikaghosyan has tightly connected the construction of a new tailing dump and employment at the plant. “If there is no tailing dump, there will be no mine operating, if there is no mine operating, there will be no plant operating… Everything depends on you, if you don’t want, you can reject, and the mining industry will be closed down in Meliq Village…” We value this statement as misinformation, as the company is able to present an alternative, for example, to conclude an agreement with other ore processing plant.”
Mego Gold Company Intends to Construct Another Tailing Dump Besides Designed Third Tailing Dump (Photos)
17:35 November 28, 2012
EcoLur
Meliq villagers have to decide whether or not they agree “Mego Gold” Company to construct a new tailing dump in the territory of the village. This is what Meliq Village Head said in the course of public hearings on the project on 27 November. Like the previous tome, the minutes of the public hearings were not drawn up. It’s still unknown when the minutes will be drawn up as an official document and passed to the environmental expertise. It’s also not clear, what these minutes will include out of the expressed opinions. The public representatives considered this to be a violation of the procedure and didn’t sign under the list of participants, while the villagers expressed their extreme concern with project risks. First of all, these risks include two non-cultivated tailing dumps and a damaged irrigation system, as a result of which 60 families lost their harvest of the potatoes. People complain of bad ecology and problems with birth rate. The NGOs expressed such an opinion that the village is on the verge of resettlement, as these land areas will stop to be fertile, while after several months it won’t be possible to cultivate these land areas.
But this is not all. Besides the designed construction of the third tailing dump, the company intends to construct another tailing dump, as Mego Gold Company is going to expand its mining volumes in Tukhmanuk gold mine despite the accumulated debts.
More details about all this, about questions and answers raised in the course of the public hearings will be provided in upcoming news by EcoLur.
MegoGold Company Project in Meliq Village: “It's Early to Speak about New Tailing Dump Unless First Tailing Dump Recultivated” (Photos)
15:29 November 01, 2012
EcoLur
Meliq Village hasn't yet made a decision on the construction of a new tailing dump. 'It's early to speak about a new tailing dump, unless the first tailing dump is recultivated,' Said Meliq Village Head Hakob Mkrtchyan. The public hearings on the construction project of a new tailing dump for Megogold Company was held in Meliq Village on 30 October. Nevertheless, the villagers didn't know anything either about the project or the public hearings. Only after half an hour after the appointed time, about 20 people came to participate in the hearings and presented their problems concerning the company activities. An interesting fact: one of the participants, Karen, who had declared about the company owing him money, over 500,000 AMD as a salary, is at the same time the shareholder of American 'Global Gold Mining' Company. The certificate is issued for 250 USD. 'When the company's business was good, about 30 employees received such certificates. I still don't know, what I will gain, but I'm not going to sell it,' Karen said.
The main problem is that the company intends to take new territories from the village, but it hasn't recultivated old tailing dumps, which cause essential damage to the village.
One tailing dump is mentioned in the list of 19 tailing dumps known to the Ministry of Emergency States. The characteristics of the tailing dump are as follows: distance from Meliq Village – 2 km, projected volume – 90,000 cubic meters, fullness – 45,000 cubic meters. The second tailing dump is missing in the list.
EcoLur working group asked to help them to get familiar with the spot of new tailing dump construction and the state of the old tailing dump. Nevertheless, the official representative of the company Henrikh Mkrtchyan left and took with them the representative of Nature Protection Minister Laura Balayan and projector Hovik Nikaghosyan.
A local resident agreed to take us to the place. Outwardly, the tailing dump complied with what the residents said about it during the hearings. Water flew out of one of them through the dug out canal. There were no dams or concrete fortifications. Unfortunately, there was nobody we could ask a question about what we had seen, while the workers having come to the spot after us just forces us out of the territory. “Go away, you don't have any right, this is our territory…”, they said. The explanations that the company is the organiser of the hearings and shouldn't hinder to examine the project on the spot didn't help.
The hearings were held in tense atmosphere. In near future you can watch the video by EcoLur, which shows the Q&A session between residents and Hovik Nikaghosyan and Henrikh Mkrtchyan.
Tailing Dump To Be Constructed in Meliq Village, 9-magnitude Seismic Zone
17:35 October 29, 2012
EcoLur
“MegoGold” LLC intends to construct a tailing dump in the territory of 7 ha in Meliq village (Aragatsotn Region), a 9-magnitude seismic zone. Public hearings on the tailing dump project will be held in the administration building of Meliq Village at 12:00 p.m. on 30 November. “MegoGold” LLC is registered in Armenia and is the subsidiary of Global Gold Company. The tailing dump will be located in a distance of 1600 meters far away from the plant. “…The volume of dumps will make up 88.6 % of all the processing volume...The composition of the tails include SiO2 – 46,23%; AL2O3 – 10,81%; MgO – 5,17% ; TiO2 – 0,82 %; CaO – 6,41%; MnO – 0,15%; Fe2O3 – 6,4%; FeO -3,62%…
Emissions into atmosphere will make up 277.27 tons during construction works… Main polluting substances in the emissions near settled areas are within standards…There are two deep tectonic fractures in the territory…According to the standards of seismic construction, the territory is located in 9-magnitude seismic zone… The volume of ores taken out during the construction works will make up 3342235 tons… Risks at construction works – elimination of vegetation, pollution of territory with construction garbage… Economic damage will make up 733.117 million AMD... The presented sum is not a ground for financial liability… The total amount of damage for environment – air, water and soil, will make up 4,426,620 AMD…”, - the report says.
The report doesn’t say how many tons of raw materials mined from Tukhmanuk mine per year will be processed at the factory and how many tons of tails will be dumped into the tailing dump. Let’s make a reference to the information provided by ArmInfo News Agency in 2008, “…The data of the State Committee on Reserves say that the level of reserves in Tukhmanuk mine make up 12.1 tons of gold with gold ratio 6.74 gr per ton and 30.79 grams of silver per ton.”
“MegoGold” Proposing to Construct New Tailing Dump in Aragatsotn Region
18:27 October 16, 2012
EcoLur
The official website of Nature Protection Ministry informs that “MegoGold” LLC proposes to construct a new tailing dump for the processing plant in Aragatsotn Region. “MegoGold” LLC is developing Tukhmanuk gold mine. The tailing dump, sized 1.53 ha, shall be located next to Melik village. The insoluble part of the tails consists of SiO2 – 46,23%; AL2O3 – 10.81%; MgO – 5.17% ; TiO2 – 0.82 %; CaO – 6.41%; MnO – 0,15%; Fe2O3 – 6.4%; FeO -3.62%... During the functioning of the tailing dump, dust emissions will make up 25.6 tons per year or 0.128 tons per day...”
Photo by www.yerkirmedia.am
BMAV1
12 years ago
GBGD Overstates Mining Volumes by 104%
I recently received copies of a letter including a summary of production reports filed by MEGO-GOLD LLC, a Global Gold subsidiary for production at the TOUKHMANUK GOLD MINE in Armenia.
The letter was issued by the Chief of Staff of the Minister of Energy and Natural Resources, Mr. Karen Kagramanyan, (MENR) following an access to information request by Mr. Arthur Grigoryan, the President of “ECOLOGICAL RIGHT", an Armenian Environmental NGO.
I have compiled the data and have compared it with the mining volumes published by GBGD in its December 31, 2012 annual 10-K report. The report is signed by Mr. Van Z. Krikorian as CEO and the rest of the Board of Directors and audited by RBSM LLP of New York.
Since 2006, GLOBAL GOLD CORP (otcqb: GBGD) has overstated its mining volume by 104% from its Toukhmanuk Gold Mine located in Armenia.
In the 10-K report, as filed with the United States Securities and Exchange Commission (SEC), for the year ending December 31, 2012, Mr. Krikorian and his board certified the following statement:
The Company has mined mineralized rock of approximately 52,000 tonnes in 2006 with content of approximately 1.27 g/t gold and 6.37 g/t silver, no mining in 2007, approximately 82,000 tonnes in 2008 with content of approximately 1.85 g/t gold and 5.21 g/t silver, no mining in 2009, approximately 21,000 tonnes in 2010 with content of approximately 2.08 g/t gold and 5.68 g/t silver, approximately 21,400 tonnes in 2011 with content of approximately 0.92 g/t gold and 3.32 g/t silver, and no mining in 2012.
The production records filed by Global Gold in Armenia paint a different story. Below is the translation of the table received from the MENR. This table is drawn from the official reports of production at the TOUKHMANUK GOLD MINE filed by MEGO-GOLD, since 2006.
TABLE 1
Converting the GBGD data to conform to the Table provided by the MENR we see a different picture emerging.
TABLE 2
Converting the Armenian data to conform to the GBGD data published in its 10-K we get the following table:
TABLE 3
In 2006, GBGD claimed it mined 52,000 tones of ore when it actually mined 12,100 tones of ore. In 2008, GBGD claimed it mined 82,000 tones of ore when it actually mined 45,660 tones of ore. Meanwhile the GOLD content remains the same, at approximately 66 kg, even-though the volumes differ dramatically. This implies the grade of the ore for 2006, as filed with the MENR, graded for Gold was approximately 5.45 g/t but the grade for Gold reported by GBGD in its SEC filings was 1.27 g/t. The ore for 2008, as filed with the MENR, graded approximately 3.34 g/t, but GBGD reported in its SEC filings that it was 1.85 g/t.
In 2010, GBGD claimed it mined 21,000 tones of ore with a Gold grade of 2.08 g/t, equivalent to 43.68 kg of Gold content. The official Armenian records show that GBGD mined 16,800 tones of ore with Gold content of 18.31 kg of Gold content, equivalent to 1.17 g/t. Global Gold overstated Gold mined in 2010 by 24.1 kg in its SEC filings.
In 2011, GBGD claimed it mined 21,400 tones of ore with a Gold grade of 0.92 g/t, equivalent to 19.69kg of Gold content. The official Armenian records show that GBGD mined 11,860 tones of ore with Gold content of 18.31 kg of Gold content, equivalent to 1.54 g/t. Global Gold overstated Gold mined in 2011 by 1.38 kg in its SEC filings.
No investor can now TRUST what the real grade of the TOUKHMANUK Gold Mine is. Global Gold reports one grade with the MENR and a different grade in their audited financial statements filed with the SEC. This is a huge problem for Global Gold since investors rely on published grades to evaluate the value of gold assets. Have investor's in Global Gold been misled?
Is Global Gold Corp. (GBGD), Mr. Van Z. Krikorian and Mr. Ashot Poghossyan willfully and knowingly conspired to file false and misleading statements in their 10-K Audited Financial Statements or have they actually filed false reports with the Ministry of Energy and Natural Resources of the Republic of Armenia (MENR)?
There clearly has to be an investigation by the SEC, PCAOB and the MENR to find out what the real truth is.
BMAV1
12 years ago
Global Gold NOT Operational
Global Gold Corp. (otcqb: GBGD) finally released its annual report for the year ending December 31, 2012 and admits it has no active mining operations in Armenia.
Toukhmanuk Not Operational
GBGD's flagship property did not operate in 2012 and the Company had NO REVENUE in 2012. Global Gold admits it can't operate until a new tailings pond/damn is built at its Toukhmanuk Gold Mine in Armenia.
On page 34 of their Annual 10-K Financial Report GBGD States:
"During the twelve-month period ended December 31, 2012, the Company did not have any revenue which represented a decrease of $81,702 from $81,702 in the same period last year. The decrease in revenue is attributable to a decrease in sales of gold concentrate of $81,702 from the Toukhmanuk property because of operational funding delays, needing a new tailings damn, and the status and funding of the Consolidated Resources joint venture."
Local Environmental NGO's have also been lobbying the Government of Armenia and rallying the public opinion to stop mining at the Toukhmanuk site too. (see my other blog at at: http://toukhmanuk.blogspot.com/2013/04/ngos-are-all-out-in-full-force-to-stop.html )
As of December 31, 2012, GLOBAL GOLD CORP had debts of US$ 8,319,727 and only US$ 3,391of cash and no prospect for cash generation at the Toukhmanuk site until the tailings damn is built and funding comes in to operate the mine.
Auditor's Raise Concern About GBGD Ability to Continue to Operate
The Auditor's for GBGD, RSMB LLC (http://www.rbsmllp.com) issued a warning in their letter to shareholders of GBGD, that the Company's financial condition raises serious doubt about their ability to continue to operate. RSMB States:
"...The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant losses as more fully described in Note 2. These issues raise substantial doubt about the Company's ability to continue as a going concern.
/s/RBSM LLP
New York, New York
April 15, 2013"
Toukhmanuk also in Default of its Mining Obligations
To make things worse for Global Gold they now have disclosed they have been misleading investors for the last 4 years about their mining requirements at Toukhmanuk Project.
Global Gold since 2009 has been informing investors that it must mine 80,000 tonnes of minarealized rock every year and invest $1,200,000.
In their recent financial statement they now state that they must mine 168,500 tonnes per year of mineralized rock.
On page 10 of GBGD's financial statements the Company 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."
Company admits that it has only mined a total 124,400 tonnes since 2008 (last 4 years) significantly less than the required 674,000 tonnes it had to mine over 4 years at 168,500 tonnes of mining per year, as further described below:
Excerpt from 10-K page 11
"... The Company has mined mineralized rock of approximately 52,000 tonnes in 2006 with content of approximately 1.27 g/t gold and 6.37 g/t silver, no mining in 2007, approximately 82,000 tonnes in 2008 with content of approximately 1.85 g/t gold and 5.21 g/t silver, no mining in 2009, approximately 21,000 tonnes in 2010 with content of approximately 2.08 g/t gold and 5.68 g/t silver, approximately 21,400 tonnes in 2011 with content of approximately 0.92 g/t gold and 3.32 g/t silver, and no mining in 2012. "
[Note:
Year: Tonnes
2008: 82,000
2009: zero
2010: 21,000
2011: 21,400
2012: zero
Total: 124,400 tonnes]
The Global Gold is definitely in technical default of its obligations under their mining license and mine plan and faces serious and real risk that it may loose its only real asset, the Toukhmanuk Gold Mine. A RISK they have failed to fully disclose in their financial statements or what actions they have to take to resolve this technical default.
see original post at http://toukhmanuk.blogspot.com/
BMAV1
12 years ago
Hey eom7 I miss you ! Did Van Krikorian stop paying You to pump his stock on this board?
Just to keep you up to date. Here is a recent online news story on GBGD and Van Krikorian, on Lurer.com
http://lurer.com/?p=49846&l=en
A few days ago Lurer.com published an article, in response to which the "Global Gold Mining" company presented some documents, which we have also published. The speech is about the problem between "GGM" company and Canadian businessman of Greek origin Mr Vasilios (Bill) Mavridis.
On October 19 Mr Vasilios (Bill) Mavridis again contacted Lurer.com and presented his reply to documents presented by "GGM" company. Below is his letter:
"The Arbitrator's ruling has not been confirmed by a US Court and it is not effective. Furthermore, Caldera has filed a motion to overturn the Arbitrator's order on elements that include misconduct, partiality, manifest disregard of the law and exceeding authority by the Arbitrator. (see attachments).
Mr. Van Krikorian, the President of Global Gold and its Legal Counsel, is a lawyer looking for angles to re-interpret agreements and gain advantage rather than do the business we agreed to. Its like the story of a multi-millionaire who marries the most beautiful women in Yerevan, and after 1 year with her and taking her beauty away, he returns her back to her family saying that the contract is not effective because one of the documents was not filed properly.
If you read the Arbitrator's Order it says that the March 27, 2010 agreement never came in to effect and the parties in the Arbitration are brought back to the date before signing the agreement. The original agreement to start the JV was signed on December 19, 2009, this agreement is still effective and it states that the parties will enter into a JV agreement as soon as possible. I will fight for this right.
On another note, Mr. Krikorian appears to have corrupted elements of the Ministry of Energy and Natural Resources, namely Mr. Koryoun Akopyan, head of the Concession Department, to get a false termination notice issued on September 28, 2010. Mr. Van Z. Krikorian used this termination notice as the main excuse to cancel the agreement with Caldera on October 7, 2010. This termination notice was later annulled in May 2011 by Ministerial decree, because it was illegally issued.
Mr. Van Z. Krikorian and Mr. Ashot Poghossyan, his General Manager in Armenia, appear to have made false and misleading statements to the US Embassy in Armenia, compelling the US Ambassador, Ms. Marie L. Yovanovitch to visit Prime Minister Tigran Sargsyan to support Global Gold. The US Embassy also sent a letter to PM Tigran Sargsyan on June 14, 2011, requesting help for Global Gold, and on June 16, 2011, Judge Ruzanna Hagobyan of the Administrative Court abruptly terminated the court case and ruled in favor of Global Gold, to terminate the registration of the transfer of the shares to the joint venture. See my facebook page: www.facebook.com/InvestigateGBGDCorruptionInArmenia
Mr. Van Z. Krikorian authorize his legal counsel in Armenia, Mr. Hrayr Gukhassyan to file a criminal complaint in September 2010, and then appeared to corrupt Mr. A. Afandyan, Deputy Prosecutor, to start a criminal investigation. Mr. A. Afandyan is either corrupt or an idiot, for filing this decision to instigate a criminal investigation on November 3, 2010, which had no legal foundation.
Unfortunately this pattern of deceit has been repeated many times by Mr. Van Z. Krikorian in Armenia. He does not pay his employees in Armenia and then when they sue to get their pay Mr. Van Z. Krikorian authorizes his agents in Armenia to counter-sue them, claiming they did not do their job or worse, Mr. Van Z. Krikorian authorizes the filing criminal complaints against his employees.
Please note Global Gold, Van Krikorian and Ashot Poghossyan are all under criminal investigation for tax fraud and other financial crimes. More information can be found on my blog at: http://toukhmanuk.blogspot.ca/2012/06/mego-gold-under-criminal-investigation_07.html
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