El Nino Ventures Inc. (
TSX: V.ELN,
Stock Forum) is ready to consider its next move after winning an arbitration proceeding against one of its joint venture partners on the Kasala copper project in the Democratic Republic of Congo.
El Nino said in a press release that under the ruling, Georges Kavvadias and his company Global Consulting Group Ltd. must return all assets of Infinity Resources, a company owned 70% by El Nino Ventures to El Nino.
As well, Kavvadias and GCP have no right to participate in the activities of Infinity Resources beyond the rights of a minority shareholder.
Those assets include the mining permits, as well as vehicles, equipment, drill core, data and all financial results.
Kavvadias is a Greek national as well as a facilitator for mining companies working in the DRC.
El Nino said that according to the arbitration ruling, El Nino did not breach either the joint venture agreement or the option agreement by failing to pay the final installments -- US$100,000 and 100,000 shares – needed to fully earn a 70% stake in the Kasala claims or by not paying exploration and development costs in the amount of US$296,626 up to May 18, 2010 as claimed by Mr. Kavvadias and his company.
In a statement, El Nino President Harry Barr said the decision is a partial award and a hearing is set for early February, 2014, to determine further costs in favour of El Nino, which includes its legal costs and other costs of the arbitration.
“As this was an international commercial arbitration, the results will support the company’s efforts in the DRC to bring closure to the appeals by Mr. Kavvadias from being removed as Gerant and for his fraudulent attempt to transfer the Kasala mining permits into his company Mikuba Mining,’’ Barr said.
Barr said he is hoping that the arbitration ruling ignites renewed interest in the property among parties who may want to joint venture with El Nino on the Kasala project.
El Nino has high hopes from Kasala, which company officials describe as one of the first new greenfields copper discoveries to have been made in the Central African Copper belt in the last 10 years.
The project permits are located 70 kilometres northwest of Lubumbashi, the DRC’s second largest city, and close to Minmetals’ Kinsevere copper mine.
El Nino shares were up 40% to 7 cents Thursday, leaving the company with a market cap of $2.2 million, based on 30.6 million shares outstanding. The 52-week range is 30 cents and 2 cents.