Note 4 - Receivable from Sale

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Financing Receivables [Text Block]

4.

RECEIVABLE FROM SALE

On

June 26, 2014,

the International Centre for Dispute Resolution delivered a Final Award in the matter of Global Gold Corporation vs. Amarant Mining LTD and Alluvia Minin

g, Ltd. awarding Global Gold

$16,800,000

USD plus

$68,570USD

in interest, costs, and fees, with post-award interest on unpaid amounts accruing at

9%,

which totaled

$4,575,311

as of

June 30, 2017.

This award emanates from Global Gold’s

2011

sale of Chilean gold mining assets and the buyers’ repeated failures to pay and misrepresentations as described in prior filings and summarized below. In addition, the Tribunal’s

June 26, 2014

Award provided the following injunctive relief: “ Per my previous orders in this matter, each of Amarant and Alluvia, including its officers and agents individually (including without limitation Johan Ulander), is continued to be enjoined, directly and indirectly, from alienating any assets, from transferring or consenting to the transfer of any shares, or performing or entering any transactions which would have the effect of alienating assets pending payment to Global Gold; Each of Amarant and Alluvia, including its officers and agents (including without limitation Johan Ulander) will provide within

5

business days all contracts, draft agreements, emails, records of financial transactions, financial statements, and all other documents in connection with their business affairs for purposes of determining whether Respondents have complied with the

July 29, 2013

and subsequent orders, have diverted funds which could have been used to pay Global Gold, and to aid Global Gold in collection.  Respondents shall specifically provide all documents related to Gulf Resource Capital, Amarant Finance, the IGE Resources stock sale and related transactions as well as documents related to the institutions from which Respondents have represented payment would issue including but

not

limited to: Mangold, Swedebank, Jool Capital, Skandinavska Bank, Credit Suisse, HSBC, Volksbank, Loyal Bank, Danskebank, NSBO, the “offtaker,” and Clifford Chance escrow account. Respondents shall execute any documents reasonably necessary or required by any institution to give Claimant access to this information and documents.”

As of

June 30, 2017

and

December 31, 2016,

the Company was owed principal amounts (excluding penalties, interest, and additional payments) of

$16,868,570

from Amarant from the sale of

100%

of the Company’s interest in the Compania Minera Global Gold Valdivia S.C.M. company (“GGV”) (and the

June 26, 2014

arbitral final award), which held the Pureo mining assets in Chile and

100%

interest in its wholly owned subsidiaries Global Oro LLC and Global Plata LLC which are each

50%

owners of Minera Global Chile Limitada, all as part of the amended agreement closed on

December 2, 2011. 

The Company wrote down principal amounts of

$

16,868,570

as of

June 30, 2017

and

December 31, 2016,

respectively, as impairment as Amarant has made partial payments but has yet to pay the full principal amounts due in full.  Amarant has reportedly assigned its interest to Alluvia Mining Limited, a public limited liability company incorporated under the laws of Jersey (“Alluvia”), an assignment which the Company conditionally consented as of

June 15, 2012,

but as of

June 30, 2017

and

September 20, 2017,

the conditions were

not

been met by any of Conventus, Amarant or Mr. Ulander. Amarant and Alluvia further entered into agreements with Gulf Resources Capital and other parties which the Company is researching to determine any of their liabilities.   For details refer to Note

13

- Agreements and Commitments paragraph Conventus/Amarant Agreement.

On

April 3, 2017,

the Swedish government in Stockholm indicted Fredrik Rodger in connection

with the Contender Kapital (subsequently Intacta Kapital)

$1

million guaranty of Amarant/Alluvia’s obligations to Global Gold Corporation. The indictment identifies Global Gold as a victim.

On

April 5, 2017,

Amarant provided a public update that it had

commenced production at

one

of the properties restricted by the

2014

international arbitral award in the Company’s favor and has raised capital in Sweden.

On

May 15, 2017,

Johan Ulander, Chairman of Amarant Mining, was arrested in Sweden on charges of

fraud.