Blugrass Energy has materially defaulted on the Blugrass Project and lost all future rights to participate in the Bullseye Project as a result of its failure to perform. The transaction is now null and void. The default occurred as a result of Blugrass failing to make its share of the annual lease renewal payments in the amount of $48,610 due on or before July 1, 2009 as well as failing to provide the financing as set forth in the Agreement that was to have been in place by May 15, 2009.
Blugrass further announced that as a separate matter it has materially defaulted on its Eastern Kentucky lease purchase for failure to maintain the leases in good standing as well as failing to make the payments on the leases as required. The transaction with Blugrass is now null and void as a result. An extension of time had been previously granted to Blugrass from the original due date of May 22, 2009 till July 15, 2009 to make the final payments. Of the original $759,000 purchase price $674,000 still remained to be paid. Blugrass will have no further claims or rights to the leases as a result of the default.
At the Board of Directors meeting held on Wednesday afternoon two new additional Directors were elected to the Board. Edward W. Karasek of New Albany was appointed to a 3 year term on the Board. Mr. Karasek holds a BS degree in Personal and Industrial Relations and MS degrees from Indiana University in Counseling Psychology. His prior work experience includes work at EDS, Marriott Corporation and Morgan Stanley as well as having consulted with numerous other Fortune 100 companies in the areas of employee and management development needs.
Ken Berscht of Calgary also was appointed to a 3 year term to serve on the Board of Directors. Mr. Berscht has had experience in raising capital for various oil and gas companies as well as mining companies. Mr. Berscht received an Honors Degree in Business Administration from the University of Western Ontario. He holds Series 7 and 63 licenses with the NASD and is a qualified commodities dealer and registered representative in Canada. He is qualified as a Series 24 General Principal on the New York Stock Exchange. Mr. Berscht also is a Member of the Society of Mining and Metallurgical Engineers.
At the Board of Directors meeting Leslie Shaefer announced her resignation as a Director and President effective immediately. David Krauza also announced his resignation as a Director effective immediately.
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