ultrapunch
23 Nov 2015
OXS vs Uzbek claim OXS have a very good chance of winning their claim against the Uzbeks (Calunius obviously thought so and funded OXS's claim to the tune of US$6.15m) and should be awarded substantial damages by the arbitrators since the Uzbeks didn't play ball with OXS as the following RNS shows.Commencement of Arbitration ProceedingsWed, 31st Aug 2011 11:31RNS Number : 3270NOxus Gold PLC31 August 2011Oxus Gold plcCommencement of Arbitration ProceedingsOxus Gold plc (Company) refers to its announced intent to commence international arbitration proceedings if settlement cannot be reached with the Government of the Republic of Uzbekistan (Uzbek Government) over the shareholder interest of the Company's subsidiary, Oxus Resources Corporation (ORC), in Amantaytau Goldfields A.O. (AGF), the joint-venture vehicle for the Company's mining investment in Uzbekistan. The Company further refers to its recent declaration of force majeure in respect of its management and services agreement for AGF and under the charter of AGF. International ArbitrationThe Company hereby announces that negotiations with the Uzbek Government have failed, and that the Company has commenced international arbitration proceedings against the Uzbek Government under the Agreement for the Promotion and Protection of Investments dated 24 November 1993 between the United Kingdom and the Republic of Uzbekistan (Agreement). Under the Agreement, the Company and the Uzbek Government are required to pursue good faith negotiations, for a period of three months, to attempt to resolve the Company's dispute amicably. While the Company has actively sought to engage in discussions and has requested meetings with the Uzbek Government on various occasions - including a formal invitation to the President of Uzbekistan - the Uzbek Government has not made itself available to discuss the issues with the Company to date. Regrettably, therefore, the Company is compelled to resort to arbitration for a resolution. Among other things, the arbitration asserts that the Uzbek Government treated the Company and its subsidiaries, Oxus Resources Corporation Limited and Marakand Minerals Limited (collectively the Group), unfairly and inequitably, discriminated against the Group, and failed to provide the Group with full protection and security, all in violation of the Uzbek Government's obligations toward foreign investors under the Agreement. The arbitration requests that damages be awarded in favour of the Company in an amount to be proven and quantified in the proceedings and currently estimated as no less than US$400 million. The Company further informs that on 21 July 2011 it was served with a claim commenced by the Ministry of Finance of Uzbekistan in the English High Courts to enforce an Uzbek judgment the Ministry of Finance obtained against the Company for the payment of a US$10 million special dividend by the Company. The Company had specifically identified the payment of such special dividend by the Company as one of the several basis upon which it would challenge the Uzbek Government in the arbitration under the Agreement. The Company considers the decision by the Ministry of Finance to commence these legal proceedings in the United Kingdom as an abuse of process which is motivated by a desire to derail the imminent arbitration under the Agreement. The Company is working together with its legal counsel to contest this claim.Force Majeure UpdateThe Company recently advised its shareholders that ORC was no longer able to comply with its management obligations towards AGF as a consequence of an onerous and arbitrary audit instituted against AGF by the Uzbek Government.Since the declaration of force majeure on 18 March 2011, ORC has continuously updated AGF's Uzbek shareholders regarding the force majeure circumstances by delivering notices that: (i) reiterate ORC's desire to negotiate regarding the future of AGF; and (ii) advise them of th
ultrapunch
23 Nov 2015
Re: Indaknow cult Audit Commission / Declaration of Force MajeureMon, 21st Mar 2011 12:38RNS Number : 3180DOxus Gold PLC21 March 2011Oxus Gold plcAudit Commission/Declaration of Force MajeureOxus Gold plc (the "Company"
refers to its announcement of 3 March 2011 in which it confirmed that its joint venture Amantaytau Goldfields ("AGF" was the subject of an extensive audit of its financial and economic activities by an audit commission appointed by the Ministry of Finance of Uzbekistan (the "Commission". The Commission began its review following discussions between the Company's wholly-owned subsidiary, Oxus Resources Corporation ("ORC" and the Uzbek shareholders of AGF as regards the disposal of ORC's 50% stake in AGF.As announced, the Directors of the Company have concluded that the Commission was not evaluating the assets of AGF in good faith and appeared to be using the process to find reasons to justify putting AGF into liquidation. In addition, certain licences and permits essential for AGF's ongoing operations have not been renewed.As a result, ORC has been forced to declare force majeure under (i) the management and services agreement relating to AGF and (ii) the charter of AGF. ORC is no longer able to comply with its obligations under either of these agreements, specifically as regards its obligations to manage AGF. Accordingly ORC's contractual obligations under these agreements have currently been suspended.The Company has to date not had a response to its proposal to the Uzbek shareholders of AGF to reach an amicable agreement to dispose of ORC's shareholding in AGF for fair value. The Company continues to work with its international legal counsel with a view to protecting the interests of the shareholders of the Company. The Company intends to move directly to international arbitration if the Uzbek shareholders do not reciprocate the Company's offer to negotiate in good faith or if there is an attempt to force AGF into liquidation. Shareholders will continue to be advised of any further material developments in respect of AGF as and when they occur.
ultrapunch
23 Nov 2015
Re: Indaknow cult But the Uzbeks were involved in discussions to acquire OXS's 50% share after the Chinese financing deal fell through.International Arbitration / Directorate ChangeThu, 3rd Mar 2011 14:48RNS Number : 2992COxus Gold PLC03 March 2011Oxus Gold plcInternational Arbitration / Directorate ChangeOxus Gold ("Oxus" or the "Company" refers to the recent announcement of discussions between its wholly owned subsidiary, Oxus Resources Corporation ("ORC" and the Uzbek shareholders of Amantaytau Goldfields ("AGF" to acquire ORC's 50% owned stake in the AGF joint venture. As previously announced, the Uzbek shareholders, being Uzbek State owned entities, had agreed, in principle, to acquire ORC's 50% shareholding in AGF for cash, at a price to be agreed. Since the above announcement, AGF has been subjected to an extensive audit of the financial and economic activities of AGF by an audit commission appointed by the Ministry of Finance in Uzbekistan. The practices employed by the audit commission have led the Directors to conclude that there is no evaluation of the assets taking place in good faith and there is a risk of the audit committee using the process to find reasons to justify putting AGF into liquidation. Accordingly, Oxus has now appointed Amsterdam & Peroff LLP ("A&P", as legal counsel who specialise in dealing with disputes involving Sovereign States, to act on its behalf and A&P today advised the Government of Uzbekistan that Oxus intends to move directly to international arbitration to protect the interests of shareholders of Oxus, in the event that an agreement cannot be reached to dispose of ORC's shareholding in AGF for fair value or where there is any attempt to force AGF into liquidation.Shareholders will continue to be advised of any further material developments in respect of AGF as and when they occur.Oxus further announces that Richard Wilkins, the Finance Director, has for personal reasons resigned as a Director of Oxus with immediate effect. Richard Shead, Chairman of Oxus, said:"We still hope that an agreement can be reached with the Uzbek State in respect of the disposal of ORC's shareholding in AGF for fair value and, failing that, the Company will be left with no choice but to proceed to international arbitration.Further, the Board would like to thank Richard for his commitment to Oxus over the years and it is with regret that the Board accepted his resignation."
marcelluswallace
23 Nov 2015
Re: Indaknow cult L, As current market cap reasonably consistent and well in excess of net value of an award without factoring litigation risk, appears that this view not widely held..Get those shorts on...MW.
LOUISJAMES_5
23 Nov 2015
Indaknow cult I agree. Oxus were given a licence to mine gold and share the profits with the Uzbek government.The took on a licence agreement they simply did not have the resources to carry out.No gold was mined!! The Uzbeks got fed up with the promises and announcements and it all got very messy!!This is $50m tops I'm afraid!!!
daviduzbek
22 Nov 2015
Re: The long delay. Oxus unfortunately did not complete their side of the agreement as they could not find the necessary finance despite being warned on several occasions that if the finance weren't in place at the agreed period, then there was no deal.The Chinese "concert party" fiasco blew right up in their faces leaving no time to find an alternative solution and having to accept the consequence.This failure to finance is the Uzbek defense and it's rather strong as it is clearly in breach of contractual terms, warnings were also give to Oxus that no finance would result in removal of the asset.This is really a case six of one and half dozen of the other. The longer it goes on, the more complex the problem actually is, and the harder it is to find a fair arbitration, resulting in more delays until a final ruling is published.Oxus and the Uzbek government will know about 10 minutes before anybody else of the ruling, timing and outcome, no more.
Pennyfalls
22 Nov 2015
Re: The long delay. Bbanker, you're probably a nice bloke, but....the sigh I'm emitting is heavy, and my eyes are rolling uncontrollably !Ican see it's pointless giving many reasons....BUT ! There are 2 sides, each has a case, each has a valuation,. There is no absolute truth, only truth as is seen by the law.The law is imperfect. Humans are involved.From past cases there is usually compromise. The Arbitrators usually go somewhere between the polarised valuations (if we win). In some cases it has been explicitly stated that the Arbitrators simply pulled out a figure between the extremes of each side's valuations.This is just how it is. Don't waste your time thinking about it further - because this is how it is !Good luck mate - don't spend all the Xmas gift money ;o)
BBanker
22 Nov 2015
Re: The long delay. Perhaps I am being naive but if Oxus wins its case I cannot understand how it cannot be awarded full recompense for its losses. Justice demands that there be no compromise in the amount of the settlement or the Uzbeks will have mounted a successful operation which has achieved an outcome that has made its illegal confiscation worthwhile. I know the Law is very unreliable but surely some sort of middle way cannot be justified.
indaknow
22 Nov 2015
Re: Volume and price up BbWould losing a grand, and your previous stake, ruin Christmas? No guarantees here as you know. Do think we'll get a result before Christmas though...
Brookie Boy
21 Nov 2015
Volume and price up Even with a known seller, SP has crept up and with decent volume. Could this be THE week? Am so tempted to buy - gamble a grand, make £5-10,000? Would be very nice for Xmas
Stonefold
20 Nov 2015
Re: The long delay. If RAB continue selling at their recent rate it will take them seven and a half months to offload their holding, or following a favourable RNS seven and a half minutes.
Pennyfalls
17 Nov 2015
Re: The long delay. Life is subjective ...and all you're doing is imposing your own cravings for a win on a process that has no emotions.Evidence: There is no factual evidence thhat this is going on much longer than expectedThere is no evidence that cases going on longer than the median result in the Claimaint winning.I'm sure if you were on the other side, you'd also be imposing these irrational positives to the Uzbek's case regarding timescales etc..Good luck all..."Very near future!" RIGHT !
Pennyfalls
17 Nov 2015
Re: The long delay. Sorry Banker, I agree with DavidUzbek...basically think it's naive and flawed thinking regarding timescales.You only have to see other full reports of companies that have lost to prove your post wrong. I don't need to argue the point. Just read up yourself. That's the problem with PIs...DYOR doesn't really mean that.
BBanker
17 Nov 2015
Re: The long delay. Whilst it has been a long wait, there will be an outcome and, in my view, the delay must be positive as we would know by now if the companies claim had failed. There is much to be considered in respect of the level of compensation which should take account of costs of the action by Oxus and the true value of this company. Both sides will be fighting their corner but in the end the Uzbeks have acted illegally and there can be little justification for any leniency in the judgement against them. I believe that Oxus have had some indication as to a date for the final outcome and their statement will be justified by news before Christmas. No one seems to wish to sell at present levels and having waited so long it would be foolish to give up now.
andyarob
13 Nov 2015
yehaaa i can see LSE again on here
