Southridge Enterprises Inc (SRGE)

[BeamMeUpScotty]

BGL write-off will be major ($10,104,640 as of August 31, 2013) when they are told to take a hike:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=94422387

9. Contingent Liability
On February 26, 2008, the Company commenced legal action in Mexico with respect to its interests in Cinco Minas and Gran Cabrera (the “Assets”). Compensation being claimed by the Company
includes enforcement of the Option Agreement and damages arising from non-compliance by MSJ.
A court of law in Guadalajara, Mexico has awarded, as a preventative measure in favor of the Company, encumbrances which have been filed against the applicable assets and mining
concessions with the Mexico Mining Public Registry (“MPR”). The outcome of the claims for remedies and damages is not determinable; therefore no amounts have been recorded in these
Condensed Interim Consolidated Financial Statements.
On March 7, 2008, the State Court, Commercial Division of Guadalajara, Mexico, issued preventive measures in favor of the Company consisting of: (i) the encumbrance of assets of the defendants for an amount of US$6,000,000; (ii) the registration of the lawsuit on the files of each of the mining concessions subject to the Option Agreement before the MPR in Mexico City; and (iii)a prohibition for defendants, the legal representative of MSJ, to leave the Court’s jurisdiction (the Mexican State of
Jalisco) until this case is settled, unless having appointed an attorney to act on his behalf while he is away. In order for these preventive measures to be put in place and stay applicable, the Company was required to place a refundable warranty bond of
$474,781 (August 31, 2012 - $418,262) (6,000,000 Mexican Pesos) in order to respond to any damages and injury that the defendants may suffer as a result of the said preventive measures being put in place. As at August 31, 2013, the Company is still in the process of protecting its interest in the Cinco Minas and Gran Cabrera mining properties in the Mexican courts.
A ruling in favour of the Company by the Federal Court will affirm the Company’s ownership interest in the mineral property and amounts will become due in order to put the concessions in good standing; however as the amounts are not determinable no accrual has been recorded in these Condensed Interim Consolidated Financial Statements. Should the ruling be in favour of the
defendant, the Company would be required to recognize an impairment charge on the property for $10,104,640.