Skip to main content

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 the 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 sued GBGD and Van Krikorian.

On the 10th of March, 2014, CRA obtained an ex parte interim injunctions against GCRL, 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 the will be expedited.

Under Jersey Law, due to the 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 
 (Plaintiff)
vs.
Global Gold Consolidated Resources Limited 
 (First Defendant)
and
Mr. Van Krikorian 
 (Second Defendant)
and
Global Gold Corp 

Popular posts from this blog

Clear and Apparent Fraud at GBGD and Toukhmanuk Gold Mine

On July 5, 2013, GBGD and Mr. Van Krikorian (President and CEO) signed a deal with Linne Mining to act as the CONTRACT MINER for the development of its Toukhmanuk Gold Mine, in Armenia.
By November 2015, Van Krikorian announced in its SEC quarterly filings (10-Q), that the Toukhmanuk project was delayed because the contract miner "requested" to be relieved of its obligations under the mining contractagreement.

To this date, Van Krikorian has failed to post a copy of Linne Mining's letter or provide any clarification to investors, why Linne Mining requested to be "relieved" of it obligations. 

Three months later, the reason for Linne Mining's actions have started to become crystal clear. Linne has been swindled by Van Krikorian and GBGD. There is no gold worth mining at the Toukhmanuk Gold Mine. Here is the proof.

Two documents, which were prepared for Linne Mining, surfaced on the web last week. These two documents outline that the database provided by GBGD and…

PART V: "YOU, YOUR BROTHER AND AZAT ARE ALL GOING TO JAIL"

That's what Mr. Van Z. Krikorian said to me and my brother (John Mavridis) in October 2010 while we were trying to resolve the dispute between Global Gold and Caldera.  Little did I know that he was serious and that his scheme was already put in place weeks before!

Mr. Van Z. Krikorian, the Corporate Counsel of Global Gold Corporation, authorized his lawyer in Armenia Mr. Hrayr Ghukassyan, to file a criminal complaint against me for theft and fraud on September 15, 2010, for allegedly stealing the shares of Marjan Mining Company.

Below is the signed complaint filed by Global Gold Mining, the subsidiary of Global Gold Corporation (GBGD) that was filed with the Prosecutor of Yerevan City, Mr. Badalyan.


Translated from Armenian

To: Mr. Badalyan,
Prosecutor of Yerevan city

From: Hrayr Ghukasyan
Global Gold Mining LLC
Representative of the Armenian Branch

Address: 2a/2 Tumanyan, Yerevan, Republic of Armenia Tel: 010 52-94-18, 093 988-797
Consider and report to:
A.R.Zakharyan
(signature)
15.09.2010