April 10, 2012 - 22:00 AMT
PanARMENIAN.Net - Caldera Resources Inc. (the “Company” or “Caldera”) received a negative decision from the Arbitrator on its claim filed against Global Gold Corporation relating to the joint venture agreement between the parties, the Company said in a press release.
The Board has received advice that there are elements in this case, which include misconduct, partiality and exceeding authority by the Arbitrator, that could give rise to a successful application to vacate (or overturn) the award. Under New York law Caldera has 90 days from the date of the “final” award to move to vacate.
In light of this, Caldera will be making arrangements to file a motion to vacate or modify the award. More details will be forthcoming over the next few days. Arbitration awards must be confirmed by a Court to become effective. Once Caldera’s motion to vacate is filed, the Court will need to settle the claims before an award can be confirmed. Caldera thus maintains its rights to the Marjan Project in Armenia under the Joint Venture Agreement, pending a Court hearing of its anticipated motion.
Meanwhile, Caldera’s President and CEO, Mr. Bill Mavridis has tendered his resignation as officer and Director of the Company. He has agreed to assist the Board during this transition period.
Caldera’s Board of Directors is working to ensure that this transition period is properly managed for all of the Company’s stakeholders. Caldera will review additional opportunities in Canada and elsewhere and intends to continue to explore its 100% owned Marjan West Project in Armenia.
The19 kilometer square Marjan West Project is an excellent exploration target as it has a prophyritic tonalite as well as kaolinitic alteration and copper mineralization. The license for the project is held by Biomine LLC, which is owned 91% by Caldera. This project is not subject to this arbitration.
The Arbitrator’s Award which was issued on March 29, 2012 focused on whether the precedent conditions for establishing the joint venture were met. The Arbitrator’s award states that:
(1) The property should revert to GGM within thirty (30) days from the date hereof. Obviously, GGM may cause the appropriate governmental bodies in Armenia to register the property in GGM's name.
(2) Any sums actually paid by Caldera to GGM, should be returned to Caldera. Said sums should be returned within thirty (30) days from the date hereof.
(3) As to any sums spent by Caldera on the property, Caldera shall be entitled to a Net Smelter Royalty 0.5 % for each tranche of $1,000,000 actually spent on the property.
Caldera’s independent geologist and Qualiﬁed Person, Mr. Ricardo Valls, M.Sc., P.Geo., identified the potential target of the Marjan West property by completing the interpretation of a satellite data. Mr. Valls, together with the local staff in Armenia, visited and sampled selective outcrops within the limits of the license last exploration season. The property has never been systematically explored in the past.
The Qualified Person’s review of the license area indicates that the Marjan West Project has a prophyritic tonalite as well as kaolinitic alteration and copper mineralization. Caldera has presented an exploration plan to the MENR and is waiting for final approval.