GOLDBROOK CLARIFIES MAY 31, 2011 ARBITRATION AWARD AND MAKES PAYMENT PURSUANT TO AWARD
Goldbrook Ventures Inc. is clarifying the arbitration award discussed in its press release dated June 1, 2011, regarding the arbitration commenced against Goldbrook by Jilin Jien Nickel Industry Co. Ltd. and its affiliate, Jien International Investment Ltd. Also, Goldbrook has made the payment of $937,426 required by the arbitration award.
This arbitration and this award are entirely separate from the arbitration and award announced by Goldbrook on July 20, 2011.
The arbitration was with respect to the timing of vesting of the option under the option and joint venture agreement dated Aug. 28, 2008, between Goldbrook and Jilin Jien in respect of the Raglan project in Nunavut. On May 31, 2011, the arbitration tribunal declared that Jilin Jien's option under the agreement was deemed to have been exercised on Jan. 31, 2011, and that a joint venture was formed between Jilin Jien and Goldbrook on that date. As a result of the exercise of Jilin Jien's option, Jilin Jien became the operator under the agreement.
The arbitration tribunal also ordered that Goldbrook pay to Jilin Jien $937,426, representing Goldbrook's pro rata share of the $1,874,852 excess rebates that were paid into the project pursuant to the agreement and subsequently reassessed to Jilin Jien. The arbitration tribunal confirmed in a subsequent ruling dated July 14, 2011, that the award is payable immediately. Accordingly, Goldbrook has paid $937,426 (plus interest) to Jilin Jien as required by the rulings.
The arbitration tribunal also ordered that Goldbrook pay the costs of the arbitration. Goldbrook has paid $175,000 to Jilin Jien in satisfaction of that order and expects to pay an additional non-material amount to cover costs of the subsequent July 14 ruling.
We seek Safe Harbor.