A global dispute over an Armenian gold mine located in Marjan has resulted in an arbitration award of $10.8 million being awarded to Global Gold, with a portion of the monies (exceeding $4 million) being awarded to Global Gold as compensation for defamatory statements made by Caldera principal Vasilios Bill Mavridis.
The award carries a 9% interest rate and other penalties if Caldera does not comply according to the schedule established by the lone arbitrator, Retired Justice Herman Cahn. Caldera had initiated the arbitration proceedings against Global Gold in 2010. Global Gold accused Caldera of failing to pay agreed payments despite having successfully raised $5 million in investor cash, misled Global Gold on the status of approved contracts, and also acquired a second mining license under a third party that clearly overlapped the Marjan mine that Global Gold was working.
Both Armenian and United States courts had found in favor of Global Gold in all matters, but Caldera insisted on arbitration as a final stage. With this ruling, there are no further options for Caldera in the courts, and Global Gold has announced they will take aggressive and fast steps to ensure prompt payment.
The interest rate attached to the award is also viewed as punitive, reflecting the perceived behavior of Caldera so far in this dispute. At 9%, any delay in payment will result in crippling additional amounts being added to the award on a regular basis, quickly outstripping Caldera’s ability to ever recover from the ruling.