Canada-based Gulfside Minerals Ltd. announced its intention to proceed with its arbitration proceedings in London against the named owner of the shares of ECM LLC, Mangreat Group Ltd., which is a British Virgin Islands company wholly owned by one of ECM partners and held through a private HK company. The BVI-registered Mangreat executed a sales agreement with Gulfside in March 2007, but failed to complete the agreement.
Now the Canadian company, along with its Mongolian legal counsel, is going to determine the next round of legal action against the vendors in Mongolia. It will review all methods available to it to assert its right for additional shares of ECM LLC, the Mongolian company which owns the exploration License to the Erdenetsogt coal project.
Some days ago, the company announced that it has won the final round in its legal suit to acquire 5 per cent of ECM LLC. Previous rounds, the first of which was commenced by the Canadian company in April 2009 to secure its 5% interest in the Erdenetsogt, ended in vendors agreeing to the company expending funds in exploration, in exchange for a share in the property, paying funds to the vendors for an interest in the property, and also agreed to the company acquiring 100% of the project. The vendors however failed to deliver on their commitments, and several times even refused to execute the agreements after all the terms were agreed upon.