RE:RE:RE:RE:Arbitration An unfavourable ruling presumably means no remedy or damages for failure to procure IA status for ETG. There is no telling what the different tax and royalty rates imposed on ETG might be if the Mongolians chose to up their levies - so a grind on net cash flows from tax and royalties not frozen by a stability agreement.
You can read the Earn-In on SEDAR - it was filed Dec 7, 2004. A day that will live in infamy is what Roosevelt said in 1941 afeet Pearl Harbor... yeah in infamy with ETG shareholders who read SEDAR as well. Anyway, section 4.9 has some odd wording in it, part of which is "nothing in this Agreement is contingent on (securing IA a treatment for ETG)". Which is difficult to understand as they promised best efforts ... so what does the best efforts promise mean if there is no remedy at all?
And we don't know what other disagreements there may be - exploration committee, information sharing, whether the misrepresentations supposedly made about panel redesign and delays and costs affect ETG and to what extent might be actionable under the Earn In and the JVA that should have been negotiated, settled and executed long ago once the Earn In conditions were all satisfied.
Perhaps they will explain further at the AGM on June 16th. It all looks like additional pressure and embarrassment for Rio to settle with a buy out. Why is ETG hanging on like an appendage on this project?
cg