Global Gold Mining considers Vardan Ayvazyan's arguments are groundless and have nothing to do with the reality

• Thursday, September 20, 18:38

Global Gold Mining (GGM) has issued a statement commenting on the judgment of the United States District Court for the Southern District of New York, according to which Vardan Ayvazyan, ex-Minister of Nature Protection of Armenia, currently MP from the Republican Party of Armenia and the head of the National Assembly's Standing Committee on Economic Affairs, is to pay $37 million to GGM.

GGM thinks that the arguments of Vardan Ayvazyan are absolutely groundless and have nothing to do with the reality.

The verdict was delivered on 10 July 2012 and came into effect in August. The Writ of Execution was sent to Vardan Ayvazyan on September 6. The ex-minister claims that there is a political context behind the decision. Ayvazyan says that he wasn't notified of the proceeding and learned about the verdict from the Internet and magazines.

To recall, GGM applied to the United States District Court for the Southern District of New York against Vardan Ayvazyan, who demanded a 3 mln USD bribe from GGM. Having failed to carry out Ayvazyan's demand, the Company lost its license to develop the deposit in Hankavan. Thereby, the company suffered 27 mln USD losses. The Company reported this situation to the appropriate authorities in Armenia and in the United States, however, the license was not
restored.

GGM says that it notified Ayvazyan of all the judicial documents, including the request for summons and the court's judgment in the written form and by mail.  

Global Gold Mining has to disclose the following: 

1. The court issued the ruling against Ayvazyan in 2003, in accordance with the provisions of the SHA Ltd.'s (SHA) Share Purchase Agreement (Agreement), SHA was the licensee of the Hankavan Mine.

It was agreed that the Agreement is subject to the jurisdiction of the Southerm District Court of New York (Agreement Jurisdiction).

2. The court passed the ruling against Ayvazyan considering his personal (vs. ministerial) capacity; it declared him as a hidden shareholder giving instructions to, and ruling the decisions of, the SHA shareholders (principal).

The ruling was issued on July 10, 2012, and went into effect in August 2012. The executive act, based on the ruling, was issued on September 6, 2012.

3. The Company regularly and appropriately notified Ayvazyan of all the court files, including the claim, evidence relating to the case, the requirements for showing up to court, as well as the Ruling. The Company sent Ayvazyan notifications, through registered mail delivery, on January 25, February 29, March 14, April 27, June 7 and August 15, 2012 to the addresses 10, Str. Alec Manookian, apt. 16, Yerevan, and 22 Charentsavan 6th district, apt 13. It got documents confirming the receipt in both addresses. Ayvazyan received as many as six notifications over this case.

4. SHA's share, at the time of being bought by the Company, totaled 500,000 Armenian Drams (approx. $ 1,250). After being acquired, the sums for the activities were raised to USD 50,000 by the Company.  Given these obligations, the price for the total cost for studies in the Hankavan mine made up USD 2,847,755.50, which is 50 times more than required under the obligations.

5. The reports on the studies of the outcomes (numerous volumes with a text and maps) were sent to the Ministry of Nature Protection in the period when Ayvazyan was a minister, and hundreds of samples, with their copies, are being kept in the Company's archives to date. In such circumstances, the SHA suspended the license, then transferred it to a company under Ayvazyan's control and was later sold to a third company. All the materials relating to the judicial proceeding are available to the public at the Southern District Court of New York and the ruling is public," reads the statement.