Armenian Prosecutor General’s Office Applies To The Economic Court A

ARMENIAN PROSECUTOR GENERAL’S OFFICE APPLIES TO THE ECONOMIC COURT AGAINST ARARAT GOLD RECOVERY COMPANY

arminfo
2007-08-02 16:17:00

Prosecutor General of Armenia Gagik Jhangiryan has lodged against
Ararat Gold Recovery Company (AGRC) to the Economic Court of Armenia,
the Prosecutor General’s Office press-service told ArmInfo.

The source reports that the Prosecutor’s Office demands stopping
the contract of AGRC and the Nature Protection Ministry of Armenia
for exploitation of Sotk gold deposit in Gegharkunik region (dated
March 13 1999) ahead of schedule. Moreover, it requests the Ministry
of Trade and Economic Development to revoke AGRC’s license for mining
activities, which was granted on July 2004. At the same time, Solicitor
General asked the Economic Court to charge 4.6 million drams and $10
million from AGRC for the state budget and to arrest the company’s
property and bank accounts to cover the claim cost.

The claim is based on the inspection of the company’s activity for
2000-2006 carried out by the prosecutor’s office and revenue service
over the last 5-6 months. Materials submitted to the court contain
also resolution of an independent expert from Canadian Strathcona
Mineral Services Ltd for the last two months. AGRC will receive
official notification shortly.

It is noteworthy that Georgian Madneuli Company belonging to the
Russian Industrial Investors (Promyshlennye investori) Group, is
ready to acquire AGRC’s shares. The negotiated transaction cost is
some $80-100 million.

Earlier, AGRC Director General Balden Krishan Sharma told ArmInfo
that AGRC is on the final stage of talks for the sale of its shares.

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