GeoProMining Gold indirectly confirms its involvement in corrupt deal with Armenian government

The GeoProMining Gold LLC, which lost the vast majority of Armenia’s Sotk gold mine after the capitulation signed by Nikol Pashinyan, “has forgotten” about the losses incurred after its main shareholder Roman Trotsenko cut a “corrupt political deal” with the Armenian government, Pastinfo reports.

As a result of the trilateral statement of November 9, 2020, a part of the Sotk mine fell under the control of Azerbaijan. In particular, Anglo Asian Mining PLC, a UK-based holding company, has stated that more than 75% of the mine is under the control of the Azerbaijani military and GeoProMining Gold does not carry out any activity in Sotk.

Experts say that GeoProMining has all the legal grounds to apply to the International Court of Arbitration, as it has suffered significant material damage as a result of the actions of the Armenian government. Speaking to Sputnik Armenia, Sargis Grigoryan, head of the GPartners Law Firm, did not rule out the possibility that investors could file huge compensation claims against Armenia in international courts as part of international agreements. Moreover, the amount of possible compensation demanded, according to him, may range from $3 billion to $5 billion, which will be paid at the expense of Armenian taxpayers.

And suddenly a redistribution of business took place. Under highly suspicious circumstances, most of the shares of the Zangezur Copper-Molybdenum Combine (ZCMC) were sold to Roman Trotsenko without the knowledge and consent of the other GeoProMining Gold shareholders, which seemingly overshadowed the damage caused by the loss of the Sotk mine.

On March 16, Pastinfo submitted a written inquiry to GeoProMining Gold Director Roman Khudoli over violations of the company’s rights due to the capitulation deal, damages suffered, and Sotk mine operation, however the company has nothing to say as a result of suspicious transactions related to ZCMC.

In particular, Pastinfo asked the company whether the interests and rights of GeoProMining Gold have been violated as a result of the implementation of the provisions enshrined in the November 9 statement of the Armenian and Azerbaijani leaders, and the scale of the material losses it suffered. The news website also sought to reveal the official reason why the company did not make a claim to the relevant international financial institutions or the International Court of Arbitration against Armenia to get compensation, especially when, according to experts, the company had quite high chances to win the lawsuit. It also asked whether any issues related to the impossibility of operating the Sotk mine, compensation for damages, personnel maintenance and security provision while developing the mine had been discussed with the Armenian authorities in writing or verbally.

Pastinfo also tried to find out the reason for the “generosity” of the company that suffered great losses towards the Armenian government. The company was deprived of the opportunity to exploit 75% of the Sotk gold mine reserves, and, accordingly, the expected profits, but in parallel with the deal in September 2021, GeoProMining Gold announced that it would not cut jobs and after the ZCMC deal signed on September 30, it donated a large part of the newly acquired shares to the Armenian government.

“In addition, we reminded the company that the Azerbaijani leadership, who had been announcing plans to sue GeoProMining Gold over the Sotk mine development and waring about the environmental risks caused by the Zangezur Copper and Molybdenum Combine, stopped making such statements after the Industrial Company, a GeoProMining Armenia subsidiary, acquired a stake of ZCMC. We tried to find out what they attribute it to and whether any efforts have been made to normalize relations with Azerbaijan,” the news site said.

“Dragging its feet, the GeoProMining Gold LLC has avoided answering the mentioned questions, thus indirectly confirming our suspicions about the shady arrangements and a corrupt deal with the current Armenian authorities,” Pastinfo stressed.

It is worth noting that Russia’s former Minister of Health and Social Development Mikhail Zurabov, who owns 12.5% of the ZCMC shares, filed a lawsuit to a court in Syunik in August 2021, asking for a preference to acquire the ZCMC shares. The court not only agreed to hear the lawsuit but also applied a measure, seizing 75% of the shares of the Zangezur Copper Molybdenum Combine.

Later on September 30, the Syunik Court of General Jurisdiction ruled to lift the ban on shares, and the GeoProMining Armenia subsidiary acquired them immediately after it. After the deal, Trotsenko granted 15 percent of the shares of the Molybdenum Combine to the Armenian government, Panorama reports.

Greenland Minerals is beginning arbitration proceedings against the governments of Greenland and Denmark

Greenland Minerals is beginning arbitration proceedings against the governments of Greenland and Denmark over its stalled Kvanefjeld rare earth-uranium project, Kallanish reports.

Arbitration has been officially requested by subsidiary Greenland Minerals A/S, after discussions with the Greenland government failed to provide a remedy, the Australia-based company says. Last month, the government rejected the company’s exploitation license. The company is seeking a hearing before three arbitrators in Copenhagen, Denmark.

“We tried to find a constructive solution through dialogue with the government of Greenland but they made it clear that they would not move from their position that Act No. 20 applies to us and our exploitation license will not be granted,” says managing director Daniel Mamadou.

The company took the step in order to protect its investment in the project and to obtain the exploitation license that is needed to proceed. The company was earlier issued an exploration license and that should entitle it to an exploitation license, the company says. It is maintaining its application for an exploitation license and is seeking an independent legal opinion as to whether the 2021 uranium mining ban applies to its project.

If the law does apply to the project, the company will seek compensation for expropriation from the Greenland government, the company says. It says it has invested AUD 130 million ($97.14m) in the project in 10 years.

The government of Greenland has banned the mining of uranium which it defines as uranium content of 100 parts per million or greater in the total resource. That rule went into effect 2 December, 2021.

The Kvanefjeld project in southwest Greenland features ore reserve that contain 108m tonnes of 1.43% rare earth oxide, 0.26% zinc and 0.036% uranium oxide. The uranium oxide content is 266 ppm and would produce about 5% of project revenues, Kallanish reports.

Anglo Asian Mining PLC said the government of Azerbaijan granted it access to the Zangilan district

Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) said the government of Azerbaijan granted it access to the Zangilan district, an area previously held by Armenia, enabling the AIM-listed company to assess its Vejnaly asset.

Senior management, including chief executive Reza Vaziri, will travel to Zangilan in early December to assess the Vejnaly contract area, including the existing mines at the site.

The mineral-rich district in the south west of Azerbaijan was occupied by Armenia between 1994 and October 2020 and the Vejnaly contract area, which contains the Vejnaly gold deposit, was mined during this time.

The assessment is the first stage in the development of the asset. The company said it hopes to begin exploration and processing of ore from Vejnaly in the near future.

The government of Azerbaijan is undertaking rapid economic and infrastructure development of the Zangilan district following the end of the conflict with Armenia, the company said. Construction of an international airport is due to be completed in 2022 and an electrical substation has recently been opened in the district.

As part of the assessment of Vejnaly, existing stockpiles will be surveyed and samples collected for analysis. Some entrances to the underground mine will be surveyed and existing camp facilities will be inspected. Conditions permitting, an inspection of the underground mine is also planned.

Source: proactiveinvestors.com