Goldrich Mining Provides Arbitration Update : vimarsana.com

Goldrich Mining Provides Arbitration Update


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SPOKANE, WA / ACCESSWIRE / December 11, 2020 / Goldrich Mining Company (OTC:GRMC) ("Goldrich" or the "Company) provides an update on its arbitration proceedings concerning Goldrich NyacAU Placer, LLC ("GNP"), a 50:50 joint venture company formed between Goldrich and NyacAU, LLC ("NyacAU") to operate Goldrich's Chandalar placer mine. GNP is in the process of being liquidated with NyacAU as the liquidator. The following is a summary of additional rulings recently received from the arbitration panel.
2018 Profitability and 2018 Interim Distributions
Under the GNP Operating Agreement, Goldrich was entitled to receive certain interim distributions based on GNP's profitability. Goldrich received such distributions for 2016 and 2017. Goldrich challenged the Panel's understanding of facts related to GNP's profitability for 2018 as presented in the arbitration proceedings and made a motion for GNP to distribute interim distributions for 2018 after applying the arbitration rulings made to date. Goldrich submitted a claim to the arbitration panel for approximately $680,000 plus prejudgment interest thereon at 5%. The arbitration panel denied Goldrich's claim. Based on the panel's ruling, the paydown by NyacAU, as manager of GNP, of Line of Credit 1 ("LOC1") with GNP funds, rather than the payment of a 2018 interim distribution to Goldrich, is not considered a misappropriation of funds. LOC1 is a related party loan between GNP and NyacAU.

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