BELMONT FILES AN APPLICATION FOR PROVISIONAL MEASURES WITH
THE INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES (“ICSID”)
Vancouver, B.C. Canada, July 9, 2014 – Belmont Resources Inc. (“Belmont”, the “Company” or “TSX.V: BEA”) Further to our news release of July 7, 2014 the Company announces the following update.
The Slovak Republic, an EU member State, has resorted to retaliatory measures in blatant violation of international law, in reaction to the mere exercise by EuroGas Inc. and Belmont Resources Inc. of their right to file an ICSID arbitration against the Slovak Republic, under the US-Slovak Republic and Canada-Slovak Republic bilateral investment treaties, for the resolution of their dispute with Slovakia in relation to their investment in the Gemerská Poloma talc deposit.
On June 25, 2014, the two companies indeed filed a Request for Arbitration against the Slovak Republic, seeking compensation for the wrongful taking of their rights and investment, in violation of international law.
The unlawfulness of this taking under Slovak domestic law has already been confirmed by the Slovak Republic’s own Supreme Court by way of decisions dated February 27, 2008, May 18, 2011, and January 31, 2013.
The date of the filing of the Request for Arbitration had been disclosed to Slovakia by EuroGas and Belmont for the sake of transparency within the amicable settlement negotiation period under the bilateral investment treaties.
Retaliatory measures taken by the Slovak Republic consisted in the issuance of an “Order for Preservation and Handing over of Computer Data” and an “Order for a House Search” at the domicile of the external accountant of Rozmin s.r.o., the Slovak Republic-incorporated company through which EuroGas and Belmont invested in the Slovak Republic and held exclusive rights for mining activities which were unlawfully revoked in 2005.
Further to these two Orders, on July 2, 2014, all of Rozmin’ s property and records were seized, by no less than eight members of the Slovak police force, the National Criminal Agency, the National Troop of the Financial Police, the National Anti-corruption Troup, and the Public Order Police. All of Rozmin’ s hardware, software and over 15,700 pages of documents were confiscated, including privileged and confidential documents as well as documents that are critical for EuroGas and Belmont to be able to present their case in the arbitration proceedings.
All documents seized were originals. No copies were made nor did Slovak officials establish a detailed inventory of the property and documents seized.
The retaliatory nature of the search and seizure is undisputable considering their timing and the explicit acknowledgment, in the Orders, that the search and seizure were instructed in reaction to the filing of EuroGas and Belmont’s request for arbitration.
To preserve their rights and prevent an aggravation of the dispute, EuroGas and Belmont are left with no alternative but to file an application for provisional measures, while reserving their rights to seek further compensation for this unprecedented violation of basic rules of international law by an EU Member State.
Further inquiries should be made exclusively to Dr Hamid Gharavi of Derains & Gharavi by email (firstname.lastname@example.org) or phone (+331 40 55 51 00).
ON BEHALF OF THE BOARD OF DIRECTORS
President and CEO, Director
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