Marjan JV terminatedhttps://finance.yahoo.com/news/Global-Gold-Announces-iw-2832537590.html?x=0&.v=1
Caldera Resources Joint Venture Termination and Status.
OnJune 17, 2010, Global and Caldera Resources announced TSX-V approval oftheir March 24, 2010 joint venture agreement to explore and bring theMarjan property into commercial production. The Marjan mining propertyis located in Southwestern Armenia, along the Nakichevan border in theSyunik province. As previously reported, the property is held with atwenty-five year "special mining license," effective April 22, 2008 andexpiring April 22, 2033, which expanded the prior license term andsubstantially increased the license area. The license required paymentsof annual governmental fees and the performance of work at the propertyas submitted and approved in the mining plan which includes mining of150,000 tonnes of mineralized rock between April 22, 2008 and April 21,2011, as well as exploration work to have additional reserves approvedunder Armenian Law in order to maintain the licenses in good standing.Caldera has advised Global as well as governmental authorities that itwould not be complying with the work requirements which prompted 90 daytermination notices from the government and the October 7, 2010 jointventure termination notice from Global. Contrary to misleading reports,these notices do not trigger mere administrative proceedings nor havethey been withdrawn.
The joint venture agreement provided thatCaldera would be solely responsible for license compliance andconducting the approved mining plan, and that "[i]n the event thatCaldera does not, or is otherwise unable to, pursue this project andpay to Global Gold the amounts provided for hereunder, Caldera's rightsto the Property and the shares of Marjan-Caldera Mining LLC shall beforfeited and replaced by a Net Smelter Royalty (the "NSR")." Calderahas not met the threshold to earn any NSR under the agreement, and itsnotice of license non-compliance as well as its failure to pay resultedin an automatic termination of its rights by operation of theagreement. The agreement provided that Caldera would deliver 500,000 ofits shares to Global, "subject to final approvals of this agreement bythe TSX Venture Exchange." The TSX Venture Exchange approval was issuedin June and Caldera failed to deliver the shares.
In addition,Global's October 7, 2010 termination notice noted Caldera's illegalbehavior in registering charter changes harmful to and without theconsent of Global, failure to operate with an agreed budget, illegaluse of power of attorney (since withdrawn), refusal to turn over jointventure documents, material misrepresentations on technical and othermatters, and more. Global has also provided notice that Caldera shouldstop using misleading pictures of Global work and properties unrelatedto Marjan on Caldera's website, and Caldera has refused to do so.Global is committed to preserving the license and hopes to resolve anyrelated problems amicably, but reports that the joint venture has beenconfirmed and not terminated were issued without Global's approval andGlobal assumes no responsibility for them or any informationdisseminated without Global's consent.