OREA Release - Legal action?Heres’ OREA’s latest release.
Orea Comments on Media Reports of Sanctions on Nordgold Shareholder
VANCOUVER, BC, March 4, 2022 /CNW/ - Orea Mining Corp. ("Orea") (TSX: OREA) (OTCQX: OREAF) (FSE: 3CG) reports that it is aware of media articles which state that Alexei Mordashov, an Oligarch often referenced as Russia's richest person, has (a) been added to the list of persons sanctioned by the European Union in connection with Russia's invasion of Ukraine, and (b) has transferred control of a US$1.1 billion stake in Nord Gold plc ("Nordgold") to his wife, Marina Aleksandrovna Mordashova.
Prior to the share transfer, Alexei Mordashov was the beneficial controlling shareholder of Nordgold, the 55.01% owner of the Montagne d'Or project in French Guiana, France, of which Orea owns a 44.99% interest.
At this time, it is not known what impact, if any, these events will have on Nordgold or its ability to continue its responsibilities under the shareholders' agreement in place between Orea and Nordgold, relating to the Montagne d'Or project.
Orea management is monitoring the situation closely and consulting with legal advisors.
My interest is in the last line posted – “…consulting with legal advisors”.
Seemingly, the first reference by OREA that they malooking at legal action. My sense is that based on previous legal news released on this issue, OREA may be looking at taking Nordgold to court; possibly related to Nordgold failing to live up to the two-entity shareholder agreement.
Again, no lawyer but OREA might now be going after NG for breach of contract; failure to present a mining application to the French for consideration. Destruction of OREA project value while taking legal action to preserve theirm own self-interest.
My druthers are if OREA decides to take this avenue they go through the French court. They would not be open to any environmental arguments as this is a case based on a failure to meet contractual obligations by NG and the major partners lack of care demonstrated for the JV's value.
Further, how might a French court view a Russian entity? Unfortunately, going to the Hague Court of Arbitration will see NG push this case out 5+ years (they have the money and the time) and may see an award of only sunken costs.
Then, remember, getting any award that is issued finally paid can take years. However, NG does have the Pistol Bay project in CAD. Hmmm?
OK, now BabyGold.
Thanks for the response.
I think both you and I would agree that our holdings in OREA are nothing when it comes to the Ukraine catastrophe. I believe we both ‘hope’ that this situation is stopped as quickly as possible. You are correct that having retired I have lots of time to study the market and my holdings. If I am going to comment I don’t waste time with 10 sec ‘written bites’. You will understand why I think as I do even if you disagree with the reasoning. I try to keep smiling each day.
Now please step up and give us your speculative reasoning with support via public information already out there, as to how you see OREA going in 2022. We look forward to your analysis.
GLTA - https://twitter.com/EarthsRare