Gulfside Minerals Ltd. has filed a writ in the District Court of Ulaanbaatar, Mongolia, to cancel the transfer of shares of ECM LLC, the company holding the Erdenetsogt exploration License, to the British Virgin Islands company Mangreat Group Ltd. In this litigation, Gulfside is seeking to have ninety five percent of ECM now owned by the BVI-registered Mangreat Group returned to Mongolia and offered to Gulfside.
The complaint is based on the fact that Gulfside is a shareholder of ECM, holding 5 percent of its shares, and, under an Agreement of June 17, 2007, it has a right of first refusal to purchase any shares of the company offered for sale by other shareholders. Under an Agreement signed with Monrospromugoli LLC on June 17, 2007, Gulfside has been awarded 5% of ECM shares. In November 2007, the shares were transferred by MRPU for five million dollars, and Gulfside alleges that as a shareholder of ECM it had the right to buy these shares.
Once the court action is initiated, the BVI company will be invited to the court proceedings as a Respondent.