RE:RE:RE:RE:RE:Confirming News Story, Court Win Hello DanGS -
First, as I try to be upfront with what I say, I am not a lawyer. Just an interested party (who holds OREA long term – so I am upset at the shenanigans that have gone on here). I have watched over the years the process re., the Hague Court of Arbitration for South American Silver and Stans Energy and their disputes with states and it has not been pretty for those companies (nor their investors – yes, guess who was holding).
However, the Russian French 1989 Investment Treaty is only between these two states (and does not include a clause for investment denial based on environmental considerations – watch that disappear after this case). This is why, IMHO, CAD-OREA was not involved by NG in this legal pursuit; not Russian or French. Since becoming the major operator for Montagne d’Or financing everything to first shovel in the ground, I don’t believe NG has a legal responsibility to tell OREA squat about its moves prior to OREA putting money into the actual buildout of the mine.
Two points to note –
1. France/Macron are opposing Montagne d’Or on environmental grounds (why they likely will lose under this treaty in terms of an award). Remember, France has denied renewal of all the FG exploration permits (Reunion 2?) and has stopped the Auplata gold producing facility in FG in its tracks a few weeks ago.
2. NG want ‘damages’ for their past decade’s worth of work - period. They are not asking for the mine to be permitted. Why would they? - they know that it will now likely be refused after permit submission. Then NG would have to go to court again (and again) with France and environmental NGOs. How many years are we talking about here with an uncertain outcome? Instead NG are licking their lips around a potential US$1/2 billion damages award which may be settled within the next 6 months (ready for NG to go public in the Summer of 2022 with lots of cash, working and potential mines and an increasing gold price, etc). Get the picture?
If you look at NG’s past history re., its buyouts of small juniors or going recently for Cardinal Res’ mine in Africa, they are not shareholder or target company friendly, and they use the law up to its limits! OREA is simply an entity to them and nothing else. This is Russian business, no emotion and using the laws to their utmost advantage.
In fact, would you go and buy OREAs 45% as another miner here? Why? To then go through the Hague C of Arbitration to gain may be sunken costs for OREA? 3-5 years + and pennies return (maybe if you can get them)?
I don’t know what OREAs answer is to this Montagne mess but like other long term holders I am praying they come up with one and my pessimism is refuted; yes please! This is why our trader brethren do not delve into these issues as the longer term is very bleak and so a few pennies a day are the way to go to make some cash now; good luck to them.
Hope this helps with your questions
GLTA -
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