GOOD NEWS!! We have succeeded in flushing out Zaamar Goldfield Co.Ltd. - Java's ACTIVE gold mining subsidiary. |
On Friday they lodged a claim at the ARBITRATION COURT at the Mongolian Chamber of Commerce and Industry against Monpolymet Co.Ltd.
This is the Mongolian private company who Armand Beaudoin signed a contract with immediately before his death 10 months ago.
I told Monpolymet (as their volunteer business adviser!) to ignore any claims by ZAAMAR until ZAAMAR was run like a normal company - ie with a properly elected - and living - General Director, plus mandatory company re-registration with the Mongolian Government (not done!), plus a parent company with a President, proper filings, a Board which meets, and clear accountability to shareholders.
The substance of ZAAMAR's claim against Monpolymet is serious and that Monpolymet is frustrating their efforts to resume mining on the rich Tulson Terrace placer deposit at the start of the 155-day mining season, and has declined to pay another big tranche of an interest-free loan to ZAAMAR. More about this in due course - it is in Mongolian and is being translated.
A SUPRISE FOR JAVA GOLD shareholders! Zaamar Goldfields Co.Ltd. has appointed a new CEO General Director to replace Armand Beaudoin. The replacement is a USA citizen, Harry L. Vassar.
The JAVA GOLD shareholders have not been told by either press release or by Annual Shareholders Meeting (last one was for 1998!)
The JAVA GOLD Board has - probably - not been told by the subsidiary, or if they were then they stayed quiet.
Who is Harry?
Here is what my team in Mongolia has turned up, mainly from the Mongolian Stock Exchange records.
Harry L. Vasner is a USA citizen (born in USA in 1940) and hails from Jakarta, Indonesia. On 5 May 1998 he was appointed Production Manager at Barmash Joint Stock Company (listed on Mongolian Stock Exchange)and in July 1999 (not long after Armand Beaudoin's death) he was appointed as General Director of the Barmash Joint Stock Company, a sizeable engineering company. This company has 384 shareholders but 70% of the shares are owned by one person (who? - we are finding out). Now for a nice spin - under Harry's regime, Barmash JSC FAILED to report its latest quarterly accounts to the Mongolian Stock Exchange (this is beginning to sound depressingly familiar...). Now for another spin - Barmash JSC, according to MSE records, in 1999 had its worst year, with ZERO sales achieved by Harry's regime, but with useful non-operating income.
For a time Harry was employed by Condor Resources Inc (a private company owned by Armand Bueadoin), which was liquidated earlier this year by the Mongolian authorities due to inactive status.
Welcome to the new General Director of your gold-mine, dear shareholders!
We will be tracking the Arbitration Court developments.
Monpolimet holds the trump card - I alerted them to the wording of the agreement signed with the the late Armand Beaudoin had a typical catch-all lawyer's clause that the contract overruled and nullified all previous agreements - which means that if Monpolimet wishes it can claim the 0.5m$ of gold that Zaamar Goldfields mined last year!
As a matter of urgency, shareholders of Java Gold Corporation need to regain control of their company from the 3 inactive Directors, and then regain 100% control of the gold mine in Mongolia by replacing most of the board of Zaamar Goldfields Co.Ltd. Not easy, but it certainly can be done!
To be a subsidiary which operates a gold mine without reporting results to anyone, to appoint a new CEO without informing the ultimate shareholders, to take to Arbitration Court a company who can easily bankrupt them, is entirely due to Java Gold Corporation having 3 sleepy directors.
So, shareholders do you want shares in a working goldmine or in wallpaper? Entirely your decision.