Goldbrook to receive credit for its share of rebatesTicker Symbol:C:GBK
Goldbrook to receive credit for its share of rebates
Goldbrook Ventures Inc (C:GBK)
Shares Issued 209,953,171
Last Close10/31/2011
.18
Monday October 31 2011 - News Release
Mr. Brian Grant reports
ARBITRATION TRIBUNAL DECLARES GOLDBROOK ENTITLED TO CREDIT FORSHARE OF REBATES
On Sept. 7, 2011, Goldbrook Ventures Inc. announced that ithad commenced arbitration proceedings in British Columbia against Jilin JienNickel Industry Co. Ltd. and its affiliates in respect of Jilin Jien's handlingof rebates received from the Quebec government for expenditures on the propertysubject to an option-joint venture agreement between Goldbrook and Jilin Jien,and other disputes relating to Jilin Jien's actions as operator of the jointventure between Goldbrook and Jilin Jien.
Jilin Jien had proposed to unilaterally establish anenvironmental contingency fund and to appropriate $2,400,404.47 in rebatesreceived from the Quebec government ("2009 Rebates") to be contributed to thatfund. On October 28, 2011, the Arbitration Tribunal announced that Jilin Jien'sestablishment of the environmental contingency fund is not authorized by, and iscontrary to the Option-Joint Venture Agreement.
The Tribunal further held that the $2,400,404.47 received in2009 Rebates must be credited pro rata to Goldbrook and Jilin Jien's interestsin the joint venture. Goldbrook and Jilin Jien each hold a 50% interest in thejoint venture. Accordingly, Goldbrook will receive a credit of $1,200,202.23from the 2009 rebates.
Goldbrook has been advised that a further $1,054,629 inrespect of a mining duties rebate relating to 2008 expenditures has beenapproved by the Quebec government and that payment is expected within the nextsix to eight weeks. When payment of this further rebate is received, Goldbrookwill also be entitled to credit of 50%, or $527,314.50, in respect of thisrebate, according to the Tribunal's ruling.
The 2011 Program approved by the Management Committee for theproject is $2.78 million. Goldbrook has already contributed $487,188 towards the2011 Program and has elected to participate. The Tribunal's decision means thatGoldbrook's remaining share of the 2011 Program is fully funded by the 2009Rebates already received by the joint venture project.
The Tribunal denied a number of other orders sought by bothparties and no damages were awarded to either party. The Tribunal furtherordered that each party should bear its own costs of the arbitration and shouldpay for one half of the costs of the Tribunal and any administration fees.
We seek Safe Harbor.
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