Arbitration is certainly an option if KRY wants to give up control of the project thus triggering repayment of the debt and try and survive for at least 2 years to get paid. Not exactly Plan A in anyones book. Who would finance a lawsuit? And think of the dilution trying to raise millions at .20-.30/share.
In response to the risk disclosure, it doesn't matter that this risk is in everyone's risk disclosures. It is in there because it is real. And since we are dealing with VZ, I would argue that they are more likely than anyone to actually pull some crap like this unlike the rest of the world. Just look at the gold sale law. They are attempting to try anything to screw transnationals out of their share of the profits. That is why no one wants to mine in VZ. So if no one wants to mine there, why would anyone give us a handsome profit for our contract?
You may be fine with it rayzz and you are a better man than me for it, but it causes concern for me. With that being said, VZ doesn't want to risk going to arbitration and losing either so I think it is also in their best interest to find a settlement.