Tuesday, May 13, 2014

Caldera vs. Global Gold Corp (otc markets:GBGD) Arbitration Restarts: Caldera Claiming Damages from GBGD's and Van Krikorian's Fraudulent Actions

Montreal, May 12, 2014 - Caldera provides the following Update on the current status of the Arbitration.

As of April 28, 2014, Arbitrator Herman Cahn, restarted the arbitration between Caldera and its estranged Joint Venture Partner Global Gold Corp, (otc markets: GBGD).

Caldera is claiming US$150,000 in advances made to GBGD and a 0.50% Net Smelter Royalty (NSR) from all future production from the Marjan Mine, as awarded by the Arbitrator.

Caldera is also claiming an undetermined sum for damages related to GBGD's and Mr. Van Krikorian's fraudulent actions, in misrepresenting that the Marjan License was in good standing, which had an effect of fraudulently inducing Caldera into signing a contract.

Caldera claims that GBGD and its President and Legal Counsel, Mr. Van Krikorian:
  • Made intentional actions, intentional statements, and through willful and premeditated fashion omitted to provide correspondences they had in their possession that proved that Marjan mining license was issued illegally and in contradiction of the Armenian Mining Code;
  • Made material misrepresentation and if Caldera was aware that the underlying license was in technical default and illegally issued it would have never entered into any deal with GBGD;
  • Made declarations that Caldera reasonably relied on, and;
  • Actions caused Caldera to suffer economic damages.
During the Arbitration hearing Caldera discovered documents which were willfully and purposefully hidden by GBGD and Mr. Van Krikorian in an effort to defraud Caldera into signing an agreement. These documents were official letters from the Armenian State Natural Resources Agency ("aka GKZ") addressed to GBGD's subsidiary. From the documents it is clear that in December 2007, GBGD's subsidiary had applied for approval of reserves on the Marjan project with the Armenian GKZ but the application for reserves was terminated by the Armenian GKZ on December 2008 due to incomplete application made by GBGD's subsidiary. This, 8 months after the Mining License HA-L-14/526 was issued on April 22, 2008.  Under the Armenian Mining Code it is illegal to issue a Mining License without approved mineral reserves and a mining license can not be issued without proper documentation in place.  It is evident that the Ministry did not follow its own laws and bureaucrats at the Ministry approved the issuance of mining license and permits illegally, and in complete contravention of the Armenian Mining Code. This a clear indication that the bureaucrats at the ministry were corrupted by GBGD.  Caldera has filed a complaint related to these matters with the US Department of Justice FCPA division and the SEC.

To this date, there are currently no official reserves for Marjan License which means that the license is illegal and can be terminated by the Armenian state at anytime. This opinion was also made public by the former Minister of the Environment and current Member of Parliament of the National Assembly of the Republic of Armenia, Mr.Vardan Ayvazyan (see Armenian Language YouTube videos below).



You can learn more about this by reading the following blog:   ALERT: Fraud and Corruption at the Marjan Mine in Armenia

For more information please contact

Bill Mavridis
Caldera Resources Inc.

Tel: 514-813-9200
email: Bill.Mavridis@calderaresources.com

Monday, April 7, 2014

Lawsuit Filed Against GBGD and its President, Van Krikorian by CRA

Montreal April 7, 2014 - According to the court roll published by the Royal Court of Jersey on March 28, 2014, Global Gold Corp and its CEO, Chairman, Director and Corporate Counsel, Mr. Van Krikorian,  are being SUED by Consolidated Resources Armenia (CRA).  CRA has invested approximately $7,000,000 in acquiring a 49% interest in GBGD's Armenian assets, namely the Toukhmanuk Gold mine and the Getik copper and gold exploration property. And now CRA is suing GBGD. Why?

I took the liberty to check the SEC filings for GBGD and there is no Form 8-K filed disclosing this lawsuit. By law GBGD must disclose material events, like a lawsuit, in 4 business days from having knowledge. There was no disclosure.

Global Gold did file a Form 8-K on February 3, 2014 stating that they have not closed Binding Heads of Agreement to merge GBGD's Armenia assets with Signature Gold of Australia. (see GBGD 8-K filing of September 5, 2013). It will be curious to see how GBGD and Van Krikorian, who received $7,000,000 cash from CRA, that they are not able to close a deal since 2011, and in fact this will be second deal they failed to close. And how will GBGD explain to the SEC that it has failed to file material disclosure Form 8-K explaining the lawsuit. In my previous blog I also provided PROOF that GBGD received a Ministerial Decree from Government of Armenia that its GETIK License was cancelled by the Ministry of Energy and Natural Resources, due to non-performance. This Ministerial Decree was issued on January 24, 2014  (see blog: GBGD Loses Getik Exploration License). Over 2 months have now passed and GBGD has not filed a Form 8-K to disclose this material event either.  Stay tuned.....As news filters out about this new lawsuit against GBGD and Mr. Van Krikorian I will bring the facts to your attention what GBGD has failed to disclose to investors in my continuing whistle-blowing effort to expose fraud at GBGD.

Posted on www.briefingwire.com: 

Thursday, January 9, 2014

Van Krikorian and Global Gold Corp (otcqb: GBGD) Accused of Misappropriating Funds From Investor

Montreal - January 8, 2014 -   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 below:

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)"

For Additional Information Please Contact

Bill Mavridis
Montreal, Canada