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GBDG Manipulates Gold Grades: Scam is not as big as BRE-X but it's still fraud.
On July 5, 2013, GBGD and Mr. Van Krikorian (President and CEO) signed a deal with Linne Mining to act as the CONTRACT MINER for the development of its Toukhmanuk Gold Mine, in Armenia.
By November 2015, Van Krikorian announced in its SEC quarterly filings (10-Q), that the Toukhmanuk project was delayed because the contract miner "requested" to be relieved of its obligations under the mining contract agreement.
To this date, Van Krikorian has failed to post a copy of Linne Mining's letter or provide any clarification to investors, why Linne Mining requested to be "relieved" of it obligations.
Three months later, the reason for Linne Mining's actions have started to become crystal clear. Linne has been swindled by Van Krikorian and GBGD. There is no gold worth mining at the Toukhmanuk Gold Mine. Here is the proof.
Two documents, which were prepared for Linne Mining, surfaced on the web last week. These two documents outline that the database provided by GBGD and used to calculate the gold resources and to develop the resources models are "fake". GBGD's claim that it has over 2 million oz of gold appears to be overstated by at least 1.9 million ounces.
see: http://www.geo-logaritmica.com/2dataSets.pdf
see: http://www.geo-logaritmica.com/WHAT_IS_WRONG_WITH_RESMODEL.pdf
A third document, which was published today (click here), the author published that he reviewed the resource models, used by Behre Dolbear and published in the Independent Technical Report of the Toukhmanuk Mine Project And Getik Prospect, Armenia, In Conformance with NI 43-101 Guideline, on October 17, 2011. The author determined that the data in the models were corrupted in a way that certain gold grades were switched with the silver grades. The net effect is that the gold resources were overvalued, making the resource models worthless. This is the worst type of fraud in mining, manipulating data to create the appearance of a valuable gold mine. Not as blatant as seeding samples with gold as in BRE-X case in 1997, but up there.
From my experience it is difficult to accept that this is an error. I have discovered that Van Krikorian and GBGD have published suspect data on the MARJAN project. and I have been reporting this since 2011.
I hope that the SEC finally shuts GBGD down and deals with this clear and apparent fraud.
(PS Don't forget, Van Krikorian and GBGD scammed their previous JV Partner, CRA. After receiving USD$7 MM investment, Van Krikorian claimed that GBGD was defrauded, Now GBGD has swindled Linne Mining out of $3.4MM)
GBGD FRAUD? Tukhmanuk Mine is DEAD!
In 2015 the company announced that their "contract" miner, Linne Mining, who was hired to put the Tukhmanuk Gold Mine in Armenia in to production walked away and is demanding over $3 million in payments. Global Gold Corp did not disclose the reasons.
From my research and analysis, It appears the reason that Linnw Minnig walked away from the Tukhmanuk Gold Mine project, was because the data provided by GBGD and used to build the mining plan, is invalid, if not fraudulent.
My analysis is supported by the following 2 documents (see links below) which I discovered posted on the internet. These documents indicate that the data set is suspect and that the data used in the 3D resource model was invalid. (i.e. fraudulent)
See:
http://www.geo-logaritmica.com/2dataSets.pdf
http://www.geo-logaritmica.com/WHAT_IS_WRONG_WITH_RESMODEL.pdf
The data indicated that GBGD's Tukhmanuk Gold Mine can only recover about 60,000 oz of gold over 5 years from the stated 2 million oz of resource that it has published.
The GBGD, Tukhamanuk Gold Mine appears to be dead.
Read more at: GBGD Announces Toukhamnuk Mine in Armenia "Delayed"... Is this the end of GBGD?
AARHUS: Global Gold Referred For Criminal Investigation
On December 22, 2014 The Armenian based environmental NGO, EcoRight, filed a request with the Ministry of Nature Protection of the Republic of Armenia to commence a criminal investigation against Mego-Gold (Global Gold subsidiary that operates the Toukhmanuk Gold Mine) for violating the laws of Armenia, and more specifically:
* embezzlement of state property through fraud;
* tax evasion through false entrepreneurship, hiding overpayments and other gained material benefits, which has caused major damage to the citizens of the Republic of Armenia;
* Performing illegal commercial activities without a special permit (license) to carry out entrepreneurial activities subject to licensing;
* violation of rules in implementing environmental safety activities;
* features of crimes in violation of rules of mineral resources conservation and use.
On January 16, 2015, The AArhus website (http://aarhus.am) published a confirmation letter dated December 26, 2014 issued by the Ministry of Nature Protection (Environment) confirming that "no inspections were conducted in the area of the (Toukhamnuk) mine, and thus no environmental impact assessment was made."
The letter from the chief of staff of the Ministry of Nature protection goes on to say that the "Tukhmanuk mine violations (have been forwarded to the law enforcement authorities for initiating criminal proceedings."
English Translation of Original Complaint to the Ministry December 22, 2014:
English Translation of Reply from the Ministry December 26, 2014:
Armenian version of Original Complaint to the Ministry December 22, 2014:
Armenian version of Reply from the Ministry December 26, 2014:
Does Global Gold Corp. Have any Gold Reserves at TOUKHMANUK?
The AARHUS Centre of Armenia published analysis showing the gold reserves issued by the Armenia GKZ under Decree No. N234 are effectively null and void. Pretty much what I have been echoing for some time.
Read below or go to link: http://aarhus.am/?page_id=1383
About Toukhmanuk gold mine or Decree No. 234 being null and void
The Ministry of Energy and Natural Resources of the RA is Confessing.
The Ministry agrees to declare that the “approved reserves” resulted by the supplementary exploration of Mego-Gold’s Toukhmanuk gold mine in 2006-2008 have not been registered in the balance sheet as a result of which has not been formed new right on Mineral Resource Management.
The web is untangling or about the Decree No. 234 to be null and void.
Through the letter addressed to the Ministry of Energy and Natural Resources of the RA 23.09.2013, we wanted to get a clarification regarding the fact already discussed many times refer to the contradiction in the clauses1 and 4 of the Decree No. 234, dated in 30.10.2009 of the Agency for Mineral Resources of the Ministry of Energy and Natural Resources of the RA on the revaluation of Toukhmanuk gold mine reserves in the Aragatsotn Province by the “Mego-Gold” LLC in 2006-2008.
Because according to the clause 1 of that decision the Agency for Mineral Resources made ??decision:
to approve the reserves of the Central Area of Toukhmanuk gold mine of Aragatsotn Province as of 01.01.2009, in accordance with the Annex 1 to this decision as well as with the data of following table:
According to the 4th clause of the decision:
4. to offer the “Republican State Geological Fund” SNCO to refrain from making amendments in the republican balance sheet of the mineral deposits arising from the clause 1 of the decision until the implementation of the works mentioned in the previous clause.
The issue was worded as follows:
a. if the above mentioned approved reserves have been registered in the republican balance sheet of mineral reserves by the “Republican State Geological Fund” SNCO or not.
The response is the following:
In response to your above mentioned letter, the reserves of Toukhmanuk gold mine in Aragatsotn Province approved by the Decree No. 234, 30.10.2009 have not been registered in the balance sheet of the mineral deposits, in accordance with the demand of the 4th clause of the same decision.
Here we consider necessary to present some of the requirements set by the RA Code on mineral recourses:
Article 63
State registration of geological exploration works, mineral resources reserves, mines, developments
1. Geological exploration works are subject to state registration.
2. It is prohibited to implement geological exploration works without public record.
3. Mineral resources reserves, mines and mineral resources developments are subject to the state registration of the balance sheet, as well as in the form of mineral deposits and developments inventory.
4. On the basis of public records data on mineral resources reserves, mines, developments and geological studies is shaped the fund of mineral resource management.
5. Expert opinion on mineral resources reserves is a basis for registration in the balance sheet
7. As a result of re-establishment mineral resources reserves relevant amendments are made in the state registration
In its response the ministry actually confirms that the requirements of the paragraphs 1 and 2 of Article 63 of the reserves state registration are overlooked by the competent authority, if the reserves were really approved in accordance with the paragraph 1 of the decision.
Or in contrary to the logic and the requirement of the laws the competent authority had approved incomplete explored reserves under the paragraph 1 of decision No. 234, so the Agency for Mineral Resources of the Ministry of Energy and Natural Resources of the RA has committed violation of the law protecting interests of Mego-Gold.
The logic requires making any conclusion based on the legal requirement, therefore, if in 2006-2008 the mine reserves based on the supplementary exploration results were not registered by Mego-Gold, then, proceeding from the above-mentioned paragraphs 1 and 7 of the Article 63, we can conclude that these resources cannot be called approved or reestablished, since relevant amendments were not made in the balance sheet.
“Confirmed” or “unconfirmed” concepts as separate concepts are not included in the Code. In the RA Code on Mineral Resources are commented the concepts “Resources” and “Accounting”.
It is worthy to speak about not registering the resources under the paragraph 4 of the decision N 234 which makes meaningless or null and void the paragraph 1 of the same decision.
Let’s take a few concepts that are commented in the code.
In accordance with the RA Code on Mineral Resources:
Article 3: the main concepts used in the Code:
11) Useful mineral resources- accumulation of useful minerals which volume, quantity, quality, and the position and shape are determined.
12) Mine – a part of the underground, which contains useful mineral which have got geological- economical evaluation.
15) Balance of Mineral Reserves – form of state registration of found mineral resources for each year as of January 1, which contains data on researched mines resources quantity, quality and degree of it exploration, as well as the change during the reporting period
The next question of our letter:
b. Whether the company has carried out the works mentioned in the paragraph 3 of the decision No. 234 or not.
Let us remind that the 3rd paragraph of the decision N 234 is the following; to underline the fact of incomplete exploration of the Central Area of Toukhmanuk gold mine of Aragatsotn Province and the strict necessity to solve the problems mentioned in the paragraph 2.1 of this Decision during the second phase of its supplementary exploration.
The answer is as follows:
“The economic entity has not presented report on the activities planned by the paragraph 3 of the decision of Agency for Mineral Resources of the Ministry of Energy and Natural Resources of the RA as a result of which has not formed new rights on Mineral Resource Management.
The only “valuable” information in the response letter is that the ministry, however, reported that defective works have not been continued, and therefore have not formed new rights on Mineral Resource Management. This honest part of the answer we qualify as an acquisition, this is a news, perhaps unwittingly confession, because at the all response letters distracting from the issues the Ministry tried to disguise through the decision N 234 the fact of operating Mego-Gold illegally without a project and by open cast method and allegedly after revaluation and reestablishment of reserves the geological-economical new conditions predicted the effectiveness of the mine development by the open cast method.
It remains to ask the ministry if a new mineral right has not been formed then in this case how had been confirmed only open pit ore mining in accordance with the mining license agreement No. 287 dated 31.07.2006, and land allocation act 086 for underground mining, and on what legal basis in 12.28.2012 have been reformulated the mineral rights act already suspended by the licensing agreement in 01.11.2008, on what ground mentioned only open pit mine and land allocation established until 2017, when, according to the Ministry’s response letter addressed to us was mentioned that “Until today, the economic entity is implementing exploration activity in accordance with the PV -184 contract, which is valid until January 31, 2015.”
Maybe it is the same kind of misprint as the exploration license granted to Mego-Gold in 02.07.2013, issued for 4 years, instead of 3 years determined by the law. Somebody is prolonging the terms of the Mego-Gold documents by misprints; it is worthy to find out who is that unfortunate benefactor.
Besides making controversial analysis refer to the decision No. 234 we should clarify why the Ministry of Energy and Natural Resources of the RA closes eyes in favor of Mego – Gold which does not fulfill the duties required by law and is carrying out illegal mining.
18.10.2013
Greta Gaboyan
Armenian NGO Demands Criminal Investigation against Global Gold
On December 12, 2014, EcologicalRight, an Armenia based environmental NGO, sent a letter to the Minister of Nature Protection of the Republic of Armenia, demanding that a criminal investigation be opened on Mego-Gold, a subsidiary of Global Gold Corp and owner and operator of the Toukhmanuk Gold project.
See Copy of the translated Letter as published on the ARHUS Website of Armenia by clicking here
See Original Armenian Version by clicking here
Ecological-Right lists the following as grounds of criminal investigation and charges against Mego-Gold/Global-Gold.
* embezzlement of state property through fraud;
* tax evasion through false entrepreneurship, hiding overpayments and other gained material benefits, which has caused major damage to the citizens of the Republic of Armenia;
* Performing illegal commercial activities without a special permit (license) to carry out entrepreneurial activities subject to licensing;
* violation of rules in implementing environmental safety activities;
* features of crimes in violation of rules of mineral resources conservation and use.
The letter is signed by the Chairman of Ecological Right NGO in Armenia, Mr. Arthur Grigorian.
Mr. Grigorian can be reached at:
tel: +37410621739
mob: +37491451320
e-mail: art.grigorian@gmail.com
GBGD Gold Mine Expansion Rejected In Armenia
Local Armenian NGO, Ecolur.org , published an article today on its website that GBGD's flagship gold mine in Armenia, the Toukhmanuk Gold Mine owned and operated by its subsidiary Mego-Gold, had its mine plan REJECT by the Ministry of Nature Protection (MNR).
In April 2013 the MNR rejected the tailings dam expansion and changed that ruling in June 2014 after the minister was changed. GBGD may still get an approval next year based on a new application. The problem is that GBGD is in technical default of its mining obligations and their mining license expires in February 2015; they may be out of time to make this gold mine work. GBGD has failed to make this gold mine work over the last 6 years during the biggest gold bull market. Now GBGD has $14M in current debt with little or no cash, and gold prices are sinking.
Read articles below:
Armenia full versions: http://ecolur.org/hy/news/officials/nature-protection-ministry-denied-tukhmanuk-deposit-exploitation-project/6885/
English summary Versions: http://ecolur.org/en/news/officials/nature-protection-ministry-denied-tukhmanuk-deposit-exploitation-project/6885/
Google translate of Armenia full version of article:
Nature Protection Ministry Turned Down Tukhmanuk Mining Project
18:29 December 15, 2014
The Ministry of Environment, "Environmental Expertise" is nixes "Mego Gold" is represented by the surface of the gold / Central station / deposit revised work plan.
Experts from the Ministry justification for the negative findings are as follows.
"- Adjusted to the situation map can not be verified due to lack of open and distance from the mine dumps economy and the possible impact on hydrological
- Hydrogeological and geological conditions in the area around the mine is not a full examination of the missing information and sources of groundwater, groundwater resource protection measures, if necessary, wet blasting and drilling program. In addition, the first stage of the operation of the center will be running mine Getik river bed changes, but the material is missing as a result of environmental impact assessments, exposure prevention, elimination or reduction measures for
- Design documentation is missing so far by the company's operations and planned activities on the environment as a result of all the possible positive and negative impacts of integrity, as well as their interaction. In addition, under the project "Environmental" of paragraph 9.1, the operation is completed, reclamation of the subject, again only to be violated as a result of the open pit areas - 4.39 hectares, dumps - 4.34 hectares, serving pit road - 4.4 hectares, was necessary for the implementation of the reclamation expenditures without justification, however, by drawing materials, pile economy under to be sold to a larger area of ??land than is represented in the project documents. In this case there is a particular area on the company's environmental impact for a full and complete picture of conclusions
- According to the "Geological, Mining, lernatekhnikakan, labor protection" brittle rock volume of 3.7 point in the first round of pit contour is hoghabusakan layer 109.82.0 cubic meters remaining aparnerine` 1328913.0 and 1897672.0 cubic meters of rock overburden rock volume that is not corresponds to the "environmental" groups Table 3.2 presents data missing hoghabusakan layer volume and its storage and use of the procedure in accordance with the Government on 08.09.2011. Decision No. 1396-N requirements
Modified the first phase of the project includes pit ore reserves established for only 4.8 percent of the full deposit is required for the design of complex documents including mine the remaining 95.2% of the reserves, the second stage of the design phase of a project to make the enlarged
- Mine does not have to limit emissions / MPE / norms scale / permissions, the waste from the company's activities are not registered, registration, normavorvel, as well as not fully implemented "Soil" The Code of paragraph 3 of Article 59 and Article 13 The requirements of paragraphs 17
- The design documents for technical assignment, open the first phase extraction productivity filed from 2010 onwards, at first it made 120.0 thousand tons in 2011, at 150.0 thousand tons, while in 2014 it will reach 180.0 million tons, followed by 2015 The first stage performance was scheduled to be open to 300.0 thousand tons, while the "environmental impact" part of the operation of a mine expansion project. However, the finalization of the revised design documentation is not clear what changes have been made to date and the date of deposit. the number of resources are included. In addition, the Ministry of Energy and Natural Resources Minister 18.11.2014 No. 01 / 29.3 / 5190-14 notified in writing that "Mego Gold" LLC will provide the Ministry of Energy and Natural Resources Agency OHP 2009 year. No. 234 dated October 30, 3rd paragraph reserves terusumnasirvats problem solving performance requirement of additional exploration, mining stocks as a result of the re-establishment of the balance is not registered
- Mined ore is planned to develop a company owned by a maximum of 100.0 thousand tons per year capacity plant, which does not correspond to the mine production capacity and has no positive conclusion
- It is necessary to introduce the company's activities in the area of ??financial and environmental impact assessment
- It does not work out of the stock as of the date they are and are not listed as a separate hankamarminneri, which is fixed to the working professional opinion of the conclusion of this defect does not provide a complete guarantee "Environmental Impact Assessment" Law 5 Article 1, paragraph "a" sub-paragraph 4 of the full implementation of the requirement,
- Working draft submitted to the alternative solutions, which might not provide the "Environmental Impact Assessment" of Article 5 § 1 of the Part "B" of the Rule requires full implementation. "
Note that on June 30, the Ministry of Environment approved the "Mego Gold" in gold extracting plant tailing dump project, which is still the same ministry in 2013 was rejected.
Hey TDASH whats going on?
All this great news you were touting about GBGD and now its trading at $0.02.
Go in there and buy some of this great stock you love so much.
I'm sure you can close it up before the bell.
Stock closed at $0.04
and it did not move in price.
But why should it move? From November to April 2015 there are no operations at Toukhmanuk because of the winter season and spring thaw...nothing will happen there in terms of mining or developing cashflow.
The only thing that may happen is that GBGD sells its Marjan Gold project. And even if they get any cash for it the company is saddled with $14 Million in debt.
CRA entered into a JV with GBGD to invest and develop the Toukhmanuk Gold Mine. CRA invested $5 Million cash to get 49% of the JV and further made $1.5M in loans to the JV to support the project. The loans are guaranteed by GBGD and CRA claims GBGD has defaulted on the loans.
CRA and GBGD both agree that the JV has failed. CRA is now suing GBGD to liquidate the JV and get a court appointed liquidator to sell the Toukhmanuk Gold mine so that it can recover $7 million investment plus damages.
What will drive value for this company? i.e. Why should anyone buy a company that may lose its key gold property in a lawsuit filed by its JV partner?
Someone bought 1200 shares for $48 of GBGD stock and the price closed up 60%.
Who buys $48 worth of stock? The commission must be more than that!
Hey Tdash stock down again this morning.
GBGD last trade was $0.025 cents, on 8,500 shares. It is now lower than the level it was before that great news you were touting. What gives?
Hey Tdash stock lost all its gains today...stock closed down 1 penny on 86,667 shares.
It took 610,000 shares to move this baby up 1 penny and 87,000 shares to move it back down. Too much overhang...this stock is probably not going anywhere considering the ongoing lawsuits in the Royal Court of Jersey and the possible court ordered liquidation of the companies assets if it loses.
I am not bashing...these are the realities that have to be taken into consideration when buying or selling this stock.
There is no logic to what you are saying,
Why would the stock go up? This company has no cash, $12 million in debt, a pending lawsuit of $7 million dollars plus damages, a claim seeking the sale of GBGD's assets and an overhang on the stock 5 Million plus shares.
Hey Tdash....
After a supposed great news and 610,000 volume this penny stock ticked up 1 penny to $0.04.
Today it is down again to $0.035 with 51,000 volume.
While I believe you are nothing but a hired gun for someone to promote this penny stock, just look at the facts.
GBGD has $12 million in debt and all of it is current.
GBGD has no CASH.
GBGD has no Gold Mining operation active anywhere.
GBGD defaulted on $1.6Million in loans to its other JV partner Consolidated Resources. (CRA)
GBGD is being sued by CRA to recover its $7Million investment
CRA is requesting a court ordered liquidation of the JV and the Toukhmanuk Mine.
This is not getting better. Caldera has no money to pay, John Ulander has no money to pay. There is no MONEY or PROFIT for GBGD. GBGD has no revenue sources except lawsuits, which it can't collect. But GBGD does have $12Million of debt and it owes its lawyers over $1M. How long before the lawyers start suing GBGD to collect their fees.
There only small hope for GBGD to sell MARJAN to get some CASH. But with all the NGOs in Armenia screaming bloody murder and even LYDIAN (TSX:LYD) , which is a real mining company, is having a hard time moving their project forward, I don't know who would buy it.
Caldera even found that GBGD core shack and data was not reliable and that the ming license was issued illegally.
So I don't think it will end well for GBGD.
What's to be excited about a penny stock, with no liquidity, no cash and $12 million in debt. Not to mention a lawsuit in the Royal Court of Jersey demanding the termination of the Toukhmanuk JV and a court ordered liquidation of the JV's assets. GBGD is far from out of the woods. http://gbgd-armenia-mining.blogspot.ca/2014/09/cra-seeks-court-ordered-liquidation-of.html
CALDERA RESOURCES is bankrupt and has no money to pay. This was a default judgement of sorts, since CALDERA never filed a defence. Caldera has not operated since 21012. So its a hollow victory. GBGD wont see one red scent and they have $12 million in debt and no cash.
So is it good news or just a close of chapter in their business dealings? They are still facing a law suit in the Royal Court of Jersey after they took $7Million dollars from their Joint Venture partner, Consolidated Resources Armenia. The lawsuit in Jersey may force GBGD to liquidate their Toukhmanuk Gold Mine by Court Order.
The Marjan Gold mine is not anywhere near production and has no approved reserves. I feel sorry for any investor who will buy the Marjan project. IMO its just another lawsuit waiting to happen. The Marjan project was issued illegally without reserves and has a mining license, so who ever buys it has to mine it. The license expired July 2014..but they may get another extension.
JUST READ GBGD 10-Q...from What I understand they essentially....
- Cancelled their JV deal on Toukhmanuk Gold Project and deprived their partners of $5MM
- Cancelled the deal with the other JV partners on Marjan Mining and deprived them of $1.6MM
- Cancelled their deal with Coventus/ Amarant / Alluvia depriving them of about $1,000,000
- Cancelled their deal with Madre Gold depriving them of $150,000
And every time they cancelled their projects, they blame their partners.
Are these guys con artists or just incapable of entering a deal and making it work?
I also hear in Armenia, that:
- Global Gold is being investigate for Tax Evasion and other financial crimes
- Their Licenses in Toukmanuk, Getik and Marjan are under investigation for non-compliance
- They missed payments to their Guaranteed loan to the ABB bank in Armenia secured by the shares of Mego Gold
They had $150,000 in the bank in JUNE and now appear to be penniless. How are they going to raise any money for any of their projects. They need millions of dollars to do anything in Armenia. Are they going to try to JV these assets again to someone else? Are they going to screw them too?
This company appears to me to be nothing more than a giant clusterfuck trading at $0.16 and a market cap of $14MM...what is it really worth? not $0.16 , that is for sure.
Will GBGD Lose the Toukhmanuk Project in Armenia?
Not only should Global Gold lose their license to the Toukhmanuk and Getik projects in Armenia, they KNOW that it is a real risk, and have failed to disclose as much, in their financial statements and their SEC filings.
Global Gold does state in their 10-K filing for December 31, 2012 the following:
The Toukhmanuk property is a lode deposit which is being mined using an open pit method. The Company has one National exploration license #15, as extended, covering approximately 10,915 acres for sub-surface exploitation of gold.The Company also has one National mining license #HA-L-14/356 which covers the central section of the property and is approximately 446 acres for mining gold and silver. The Company is required to pay annual governmental fees of approximately $32,000. The Company is also required to spend annually approximately $1,200,000 on exploration work and mining annually 80,000 tonnes of mineralized rock at the property as submitted and approved in its mining plan in order to maintain the licenses in good standing.
Global Gold has failed to disclose to investors that they have not met these license requirements and that the license is currently not in good standing.
These misrepresentations are a breach of SEC regulations and probably constitute FRAUD by Global Gold, Mr. Van Z. Krikorian, CEO and Corporate Counsel, Jan Dulman, CFO and registered CPA, and its Directors, Ian Hague (of FireBird LLC and the largest Shareholder of GBGD), Nicholas J. Aynilian, (Owner of Vanick Properties in NJ), Harry Gilmore, (Career US Foreign Services employee and the First Embassador to Armenia for the USA) and Drury J. Gallagher, the Chairman Emeritus of GBGD and one of its original Managers.
Every Board Member and all the management of Global Gold know these facts but they fail to make adequate disclosure to investors so that it can be clear that GBGD has not met the license requirements and currently is not in good standing and the Armenian Government has every right to cancel their license for non-performance.
For the average investor to figure this out, he would have to go through the whole 10-K and find one little sentence buried in a paragraph on page 11 of the 10-K report that reads:
In 2008, GGM upgraded the plant and lab, installed a new gold room, recommenced mining and production of concentrate, and continued its analysis of the prior year’s drill results. Also, the Company compiled its reserve report and submitted it to the state committee on reserves of Armenia in March 2009 (please refer to the “Cautionary Note to U.S. Investors” on page 3 of this report). The Company has generated minimal sales from gold and silver concentrate from the property. Sales were approximately $6,000 in 2006, $10,400 in 2007, nothing in 2008, $136,600 in 2009, $358,400 in 2010, and $81,702 in 2011. he Company has mined mineralized rock of approximately 52,000 tonnes in 2006 with content of approximately 1.27 g/t gold and 6.37 g/t silver, no mining in 2007, approximately 82,000 tonnes in 2008 with content of approximately 1.85 g/t gold and 5.21 g/t silver, no mining in 2009, approximately 21,000 tonnes in 2010 with content of approximately 2.08 g/t gold and 5.68 g/t silver, and approximately 21,400 tonnes in 2011 with content of approximately 0.92 g/t gold and 3.32 g/t silver. As of December 31, 2011, the Company has spent approximately $10,260,000 on mining and exploration activities at this property, excluding acquisition and capital costs.
Nowhere in the the SEC filing, 10-K report of December 2011 does it state the anything like this:
THE COMPANY HAS FAILED TO MEET MINIMUM PRODUCTION REQUIREMENTS UNDER THE MINING LICENSE AND AS SUCH IS NOT IN GOOD STANDING. IF THE COMPANY DOES NOT CORRECT THIS OR MAKE OTHER ARRANGEMENTS WITH THE AUTHORITIES OF GOVERNMENT OF ARMENIA, THE LICENSES MAY BE AT RISK OF CANCELLATION DUE TO NON-PERFORMANCE OF LICENSE REQUIREMENTS.
Now that would be proper disclosure !
Below is a table of the actual production recorded by Global Gold on the Toukhmanuk Gold Mine from 2006 to 2011. This information has been compile form GBGD's SEC filings.
Link to Blog and Table
** I am not sure if the 2006 production number is true it may only be 30,000 tonnes considering the 10KSB filed in 2006 states:
In 2006, Global Gold Mining drilled over 10,000 meters of exploration for gold and polymetallic mineralization at Tukhmanuk, mined approximately 30,000 tonnes of ore, and engaged in small scale, experimental processing of concentrate at the pilot plant. **
GBGD is not evil.......they are acting against SEC regulations by making false statements in their filings, using a foreign criminal justice system to gain advantage in civil lawsuits, corrupting government officials in Armenia.
This is not "evil" it is illegal.
Now they screwed their last Joint Venture partners out of $5,000,000 and it is never their fault. How unlucky are these guys or how corrupt are they? You decide!
The ringleader is Mr. Van Z. Krikorian, a member of the New York Bar, Corporate Counsel for Global Gold and its Chairman, CEO and Director. And probably not too far behind is hedge fund opertor, and majority shareholder, Mr. Ian Hague, of FireBird LLC, who was out of pocket $5,000,000 in loans that he converted to stock. It is interesting that Consolidated Resources got scammed out of $5,000,000 the same amount that Ian Hague was out. A coincidence? I think not.
See 8-K filed by GBGD on October 19, 2010
As of October 15, 2010, Global Gold Corporation (the "Company") has outstanding loans plus accrued interest totaling $5,312,642.95 from three of the Company’s Directors, Mr. Ian Hague ($5,052,262.27), Mr. Nicholas J. Aynilian ($154,030.68), and Mr. Drury Gallagher ($106,350). On October 19, 2010, the Company’s non-interested members of the Board of Directors approved a restructuring in aid of settlement of all this debt to extinguish and convert this outstanding debt. Pursuant to the restructuring, the loans were cancelled and became convertible into shares of the Company’s common stock at $0.15 per share. As of October 22, 2010, the Company has been given acceptance for the entire conversion. The transaction will benefit the Company by reducing the current debt by $5,312,642.95 and eliminating the interest from continuing to accrue on these debts. The Company will issue a total of 35,417,620 shares of the Company’s common stock which will be restricted in exchange for the debt cancellation. The conversion of debt by Mr. Hague will not impact his 1.75% NSR royalty on the Pureo property in Chile and will remain in force.
IS GBGD A CORRUPTING FORCE IN ARMENIA?
WHO IS MR. KORYUN HAKOPYAN?
Mr. Koryun Hakopyan is the Head of the Subsoil Concession Agency of the Ministry of Energy and Natural Resources of the Republic of Armenia (MENR).
From my experience in Armenia I believe Mr. Koryun Hakopyan appears to be corrupt and people like Mr. Van Z. Krikorian and Mr. Ashot Poghossyan of Global Gold Corporation (GBGD) are enabling corrupt officials like Mr. Koryun Hakopyan to continue operating, business as usual.
Corruption is hard to prove from my side of the fence, I don't have the smoking gun, but this circumstantial evidence is enough to spark a full investigation by authorities in Armenia and in the USA against Global Gold and Mr. Van Z. Krikorian.
This is a profile of RAKE LLC published online.
RAKE LLC
RAKE LLC was established in 2006 and its first and largest client was Global Gold Mining. Millions of dollars in contracts for drilling, trenching, sampling, mapping and geophysical surveys and mine planning were given to this company by Global Gold Mining.
As is typical in corruption prone Armenia, government officials own many businesses through their relatives or friends. In this case it is a well known secret that Mr. Koryun Hakopyan, the Head of the Subsoil Concession Agency of the Ministry of Energy and Natural Resources of the Republic of Armenia has an interest in RAKE.
This type of link of Business and Corruption in Armenia is not uncommon, as further discussed by the Business Anti-Corruption Portal:
http://www.business-anti-corruption.com/country-profiles/europe-central-asia/armenia/show-all/
"The US Commercial Service 2010 evaluates the relationships between high-ranking government officials and the emerging private business sector as encouraging influence peddling. According to this source, powerful officials at the national, district or local level acquire direct, partial or indirect control over emerging private companies. Such control is exercised through a hidden partner or through majority ownership of a prosperous private company. This involvement can also be indirect, through close relatives and friends."
And that's how the cookie crumbles in Armenia.
Koryun Hakopyan makes sure Global Gold maintains its concession, clears the red tape, or covers for Global Gold Mining at the Ministry and you give RAKE a drilling contract.
Koryun Hakopyan issues a bogus termination notice and Global Gold keeps doing business with RAKE.
Rake LLC was a new mineral exploration firm established in 2006, it had no history of operations yet Global Gold hires them to do drilling, trenching, mapping and pays RAKE millions of dollars for work performed.
Why does a "professional" organization like Global Gold hire unproven operators like RAKE to do serious geological exploration work for them?
Why is Global Gold, RAKE's first client and its largest client till this date?
Because Mr. Koryun Hakopyan is the Head of the Subsoil Concession Agency of the Ministry of Energy and Natural Resources of the Republic of Armenia and Global Gold needs to keep him happy by doing business with RAKE.
But this relationship can work the other way too. In this case Mr. Van Z. Krikorian and Mr. Ashot Poghossyan demand favors from Mr. Koryun Hakopyan in exchange for continuing to do business with RAKE.
What Favor?
The MENR issues a "termination" notice on September 28, 2010 and Global Gold uses it as a ruse to terminate the JVA with Caldera Resources Inc.
Termination Notice pg 1
Termination Notice page 2
Here is a "purported" termination notice signed by the Chief of Staff of the Minister of Energy and Natural Resources, Mr. K. Gharhamanyan.
Mr. Gharhamanyan is a very busy man and depends on his departments to do their work properly, so when Mr. Koryun Hakopyan authorizes the issuance of a "termination notice" the chief of staff signed it. Little did the Chief of staff knwo that this letter was illegally prepared by the Concessions office which headed by Mr. Hakopyan.
On October 7, 2010, GBGD terminated the JVA and issued a press release on October 18, 2010 claiming that: "Caldera has advised Global as well as governmental authorities that it would not be complying with the work requirements which prompted 90 day termination notices from the government and the October 7, 2010 joint venture termination notice from Global." This statement is false and part of the scheme of Mr. Krikorian to discredit Caldera and cancel the JVA. Caldera has filed a complaint with the SEC against Mr. Krikorian.
GBGD’s claims and the purported “termination” notice, which was used as a trigger to illegally terminated the JVA, appear to be contrived, considering that the Minister of Energy and Natural Resource of the Republic of Armenia annulled the notice by way of Ministerial Decree on May 11, 2011.
The Minster’s decree states that reasons for the annulment of the notice was that there were no facts to support it and that proper procedures were not followed. Here is the Minster's Decree annulling the "termination" notice that was illegally issued along with the minutes/protocols of the administrative hearing.
Ministers Decree
Minutes of Administrative Hearing pg 1
Minutes of Administrative Hearing pg 2
Minutes of Administrative Hearing pg 3
The “termination” notice of September 28, 2010 was clearly contrived, considering that the Minister of Energy and Natural Resource of the Republic of Armenia annulled the notice by way of Ministerial Decree on May 11, 2011.
This is evidence of corruption considering this notice was delivered to Ashot Poghossyan and used by Van Krikorian and Global Gold as a trigger to unilaterally terminate the JVA with Caldera on October 7, 2010.
It appeared too conveniently, and was illegally issued, to be anything else but evidence of corruption.
Now Van and Ashot can claim they don't deal with Koryun Hakopyan but in 2009 I received an email from Van and Ashot relating to comments from a "friend of theirs in the ministry", Koryun, who was assisting them in interpreting issues related to the Lichkvaz Tey project.
Here is the email.
Van Z. Krikorian vkrikorian@globalgoldcorp.com
04/02/2009
to me
-----Original Message-----
From: Ashot Boghossian [mailto:aboghossian@ggm.am]
Sent: Tuesday, February 03, 2009 10:29 AM
To: Van Z. Krikorian
Subject: [Fwd: Concession Law without amendments]
This is the old version, but look at Article 66. Note that they changed
the law afterwards, to say that Mineral Rights means the license and the
license agreement. Koryun says Sipan has not signed the license
agreement, and the term provided for entering the agreement after the
license was issued already expired. I told Koryun that the initiative
for signing was the government's, so they can have an excuse. Also, they
changed the law after the license to Sipan was issued, so legally that
could be argued to, that the change of law (Mineral Right means license
agreement included) does not have a retroactive effect, and can not
affect the Mineral Right held by Sipan. The Ministry has honored this
argument while re issuing the Getik license to us, and they also said
they had a similar precedent. Let me know.
If it walks like duck,
quacks like a duck,
it's "corruption"
VISIT THE VIDEO PAGE ON MY BLOG
AND SEE SCATHING VIDEO REPORTS
FROM ARMENIA AGAINST GLOBAL GOLD
News Reports on GBGD from Armenia
Global GOld is in the whole for $+10MM and owe their former partners $5MM for cancelling the deal.
What did they do with the $5MM?
Their financial statements for Dec 2011 (10-K) show:
General and administrative $ 3,302,010
Mining and exploration costs $ 1,925,781
--------------------------------------
$ 5,227,791
General and Administrative of $3.3MM? This is ridiculous.
Total Liabilities $10,866,044 which includes Proceeds from the sale of minority interest in joint venture pending of $5,000,000. I guess they have to return.
see 10-K at:
http://sec.gov/Archives/edgar/data/319671/000143774912003907/globalgold_10k-123111.htm
I guess it is a matter of time they stop being a fully reporting issuer and go to the pinks.
Who the hell is supporting this stock? It is still trading at $0.15 and a Market Cap of $12.5MM!
They got a $5Million dollar investment for the 49% interest the Toukhmanuk and Getik projects, in Armenia. Unfortunately Global Gold killed that agreement for non-performance. Sounds like Caldera 2.0 to me.
I guess they owe that $5MM back. What an f'n mess.
Bill Mavridis is no longer the President of Caldera, management or Director. He resigned from Caldera on March 30, 2012.
YOU HEARD IT HERE FIRST....Global Gold (GBGD) has not disclosed if there are any risks associated with its pending application for a a new licence for the Toukhmanuk Project under the new mining code in Armenia. Nowhere in their SEC filings do they talk about this!
The new Mining Code of Armenia took effect January 1, 2012.
Link to New Mining Code-Armenian: https://www.box.com/s/2083ad2443addcef34de
Link to New Mining Code-English: https://www.box.com/s/67f0d8905e6bb6876337
The law requires that all license holders apply within 12 months (Article 80(5)) for a new agreement with the Ministry of Energy of Natural Resources. If the MENR does not re-issue the new license/agreement, then operating the mine will be illegal (Article80(6)).
Can the new license for Tukhmanuk be refused? What are the RISKS?
Please disclose this Global Gold!
TRANSITIONAL AND FINAL PROVISIONS
ARTICLE 80
Transitional Provisions
1. Present Code shall apply to legal relationships arising during mining activities after the Code enters into force, unless provided otherwise by present Code.
2. Contractual or other legal relationships arising during mining activities carried out before the present Code enters into force shall be subject to the same rights and responsibilities, which shall apply after the Code enters into force.
3. Mining rights provided before present Code enters into force shall remain in force.
4. Those mining operators, which by the date when present Code enters into force do not have registered rights over the land plots that are necessary for mining, may apply to the head of respective community in the established manner for land allocation.
5. Mining licenses provided before shall stay in force until receiving a permit pursuant to new Code. In case of reissuing the right of mining, period for provision and effect of the new permits are deemed as periods established under licenses granted before this law entered into effect.
6. Within 12 months after this law enters into effect, mining operators shall apply to the authorized body for reissuing their mining right (license, contract, act on mining site allotment). In case of reissuing the right, additional payments from mining operator shall not be levied.
7. In case if mining right (license, contract, act on mining site allotment) is not reissued within 6 months after the new Code enters into effect, activities of a mining operator shall be deemed as illegal entrepreneurship, whereby the respective sanctions shall apply.
visit my blog at http://toukhmanuk.blogspot.ca/
FACTS....
Yes read the report and you will be confused like any professional in the mining industry will be.
1. Can you really transfer GKZ style reserves to resources? (NOT REALLY, it still needs Confirmation!)
2. Can you use the data compiled by Global Gold after 2001, since none of the work was supervised by a Qualified Person as defined by CIM and the NI 43-101
Much of this data must be reviewed by a Qualified Person, (local Armenian Geologists are not Qualified under CIM) before it can be accepted as a qualified NI 43-101 report.
Also , the author of this report does state that Global is required to mine 80,000 tonnes a year and invest approximately $1,200,000 a year in exploration. Global Gold has not done this and appears to be in default.
see my blog: Is the TOUKHMANUK License at RISK of being CANCELLED?
LOL
READ MY BLOG and READ the 43-101.
Is there any Gold in the Toukhmanuk Mine in Armenia, worth mining?
THIS IS WHAT I FOUND OUT.....
Read my blog about the truth of Global Gold's Toukhmanouk Gold Mine and the unethical tactics employed or I shoud say deployed in Armenia by GBGD's Chairman, CEO and Corporate Counsel, Van Krikorian.
Is there any Gold in the Toukhmanuk Mine in Armenia, worth mining?
Global Gold Corporation (GBGD) and Van Krikorian Tried to Send Me to Jail in Armenia