Caldera Seeks to Overturn Commercial Arbitration Order
Caldera Resources Inc. reported on April 26 that they intend to move to overturn a stay on the commercial arbitration award that was made on March 29, 2012. The suspension of the arbitration award makes the transfer of “The Marjan Property” in Armenia effective after May 22, 2012. There were several aspects of this order that were not acceptable to Caldera.
The Grounds for Appealing This Contract Arbitration Order
The decision in this arbitration effectively annulled the contract between Caldera and Global Gold Corporation. This greatly affects Caldera's rights related to the Marjan Project. The end result ultimately means that Caldera no longer has control of Marjan Mining Company LLC, and no stake in the lucrative Marjan Project. This apparently has no effect on their stake in another project, called The Marjan West Project.
Caldera claims that Judge Kenneth Karas (United States District Court in New York's Southern District) was not impartial, exceeded his authority, showed manifest disregard of the law, and showed general misconduct. They plan to present the merits of their case on June 28 or soon afterwards.
Background of the Legal Arbitration
Global Gold Mining's Armenian Branch sued the Ministry of Justice in Armenia before Armenia's Administrative Court in an attempt to annul the shares of Marjan-Caldera Mining LLC, a joint venture between Caldera and Marjan Mining Company registered pursuant to the Joint Venture Agreement. Caldera threw their hat in as a third party to protect their interests.
The Cassation Court of Armenia ruled in favor of GGM on February 23, effectively severing the joint venture. This upheld the ruling by the Administrative Court which said that the venture was invalid due to technical problems on behalf of the State Register in the registration process. From there, this case went into the previously mentioned commercial arbitration process.