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2014 Arbitration Proceeding filed by Goldgroup Resources Inc.
−Removed: On March 14, 2014, Goldgroup filed for arbitration in the United States with the American Arbitration Association (“ AAA ”), seeking monetary and nonmonetary relief, and citing the Earn In/Option Agreement as the basis for its filing.
+Added: On March 14, 2014, Goldgroup Resources, Inc., (“Goldgroup”), a former joint venture partner of the Registrant, filed for arbitration in the United States with the American Arbitration Association (“ AAA ”), seeking monetary and nonmonetary relief, and citing the Earn In/Option Agreement as the basis for its filing.
On August 25, 2016, the AAA issued a ruling in favor of Goldgroup against the Company and DynaMéxico (the “ Arbitration Award ”).
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On May 20, 2021, the Company and DynaMéxico agreed to release the $1.111 million bond that had been posted, and paid an additional $4,054 in interest, in full satisfaction of the monetary portion of the Arbitration Award.
−Removed: Since that time, the Company has fully performed the non-monetary portion of the Arbitration Award, which included the election of a Goldgroup designee to the board of DynaMéxico, yet Goldgroup continues to challenge the Company’s actions before the Colorado U.S.
−Removed: District Court.
−Removed: 2014 Court filing by DynaMéxico, in Mexico
−Removed: On December 9, 2014, DynaMéxico filed a commercial lawsuit against Goldgroup, its parent company Goldgroup Mining Inc., and the AAA, in the Thirty Sixth Civil Court in the Federal District of México (the “ Trial Court ”), under file 1120 number / 2014 (the “ DynaMéxico Trial ”).
−Removed: In the DynaMéxico Trial, DynaMéxico sought to terminate the U.S.-based arbitration proceedings, and requested that substantial damages (in the amount of US $50 million) be awarded to DynaMéxico against Goldgroup.
−Removed: On October 5, 2015, the Trial Court awarded DynaMéxico damages in excess of US $48 million.
−Removed: Goldgroup has appealed the $48 million damages award on multiple occasions, yet the award stands and has been affirmed by a variety of Mexican courts, including the highest court in the land.
−Removed: Even in the face of multiple rejections of its arguments before Mexican courts, Goldgroup continues to raise baseless and unfounded objections to the award.
−Removed: On October 5, 2016, the Trial Court (the same court which made the $48 million damages award) approved a grant to DynaMéxico of a lien (referred to by the court as an “Embargo”) upon the shares of DynaMéxico held by Goldgroup in certificate form.
−Removed: On February 20, 2020 , a México City court issued a final judgment, effectively foreclosing on all shares of DynaMéxico formerly held by Goldgroup, and awarding those shares to DynaMéxico.
−Removed: Those shares are now legally owned, and physically held, by DynaMéxico.
−Removed: Consequently, Goldgroup currently owns no shares of DynaMéxico under Mexican law, which requires physical possession of shares to evidence ownership.
−Removed: The award to DynaMéxico of the shares formerly owned by Goldgroup, does not satisfy the $48 million damages award in favor of DynaMéxico.
−Removed: 2020 Petition for Recognition of the $48M Damages Award
−Removed: On December 5, 2020, the Company and DynaMéxico filed an Original Petition for Recognition of the $48 million damages award in favor of DynaMéxico, in US.
−Removed: District Court in Dallas County, Texas (the “ Texas U.S.
−Removed: District Court ”), under principles of international comity.
−Removed: On May 12, 2021, The Texas U.S.
−Removed: District Court issued a ruling stating the Court was not obligated to recognize the $48 million damages award in the United States.
−Removed: On May 14, 2021, the Company and DynaMéxico filed a Notice of Appeal of that ruling.
+Added: Since that time, the Company has fully performed the non-monetary portion of the Arbitration Award, which included the election of a Goldgroup designee to the board of DynaMéxico.
+Added: DynaResource de Mexico SA de CV Legal Update and Disclosure:
+Added: On March 3, 2023, Goldgroup Resources Inc.
+Added: (“Goldgroup”) filed a formal notice with the México Federal Legal Authorities, which confirmed Goldgroup’s complete withdrawal of all legal claims in Mexico and under Mexican law against DynaResource de México SA de CV.
+Added: Goldgroup’s complete legal withdrawal is the result and culmination of 7 years of legal actions undertaken in Mexico by DynaMéxico.
+Added: Accordingly, all matters before the courts in México with respect to DynaMéxico and Goldgroup Resources Inc.
+Added: are fully resolved and are no longer subject to appeal.
+Added: Consequence of the México legal rulings and the Goldgroup legal withdrawal:
+Added: The $48,280,808.34 USD damages award (dated October 05, 2015) in favor of DynaMéxico and against Goldgroup Resources Inc., confirmed by Mexican courts in 2019, is final, conclusive, and enforceable under Mexican law.
+Added: Goldgroup Resources’ challenges to that award have been fully denied and the damages award is final.
+Added: Goldgroup’s challenges to DynaMéxico’s share ownership have also been fully denied and consequently, under Mexican law, Goldgroup owns no shares in DynaMexico.
+Added: Mercuria Energy Trading S.A vs Mineras de DynaResource S.A.
+Added: In 2020, Mercuria Energy Trading, S.A.
+Added: (“Mercuria”) initiated an arbitration proceeding against Mineras de Dynaresource, S.A.
+Added: (“Mineras”), arising out of the earlier-terminated supply agreement between the parties.
+Added: In January 2022, The arbitration panel awarded Mercuria the sum of US$1,822,674, plus interest at 2% over the quarterly compounded USD 3- month LIBOR rate, from February 2020 forward.
+Added: In August 2022, the panel also assessed costs of the arbitration proceeding against Mineras, in the aggregate amount of £ 376,232.75.
+Added: DynaResource has accrued $1,000,000 for the arbitration award and related costs.
+Added: The Company notes the following:
+Added: since Mineras is a company of Mexican nationality, under Mexican law Mineras has the right to legally oppose the recognition and enforcement of the award to Mercuria, the assessment of any costs, and any supplemental award.
MINE SAFETY DISCLOSURES
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.