Ron Woo's Gold Mountain Mining Corp. (GMTN) crashed 3.5 cents to two cents on 3.53 million shares Wednesday, following a halt called to reveal the company's latest woes. Today it lost one of its last two cents on 11.5 million shares. Gold Mountain has received demand for payment letters from two site contractors at the Elk project in south-central British Columbia. The creditors are demanding payment of $5.6-million, of which $4.7-million is owed to its main mining contractor, which also served a notice of enforcement of security against the company.
Gold Mountain had barely $70,000 in the bank at the end of October and its current accounts showed a $6.3-million deficiency, so it is no surprise that Mr. Woo, chief executive officer since July, says that the company "does not have the means to pay these amounts at this time." (Even if it did, finding someone to sign the cheque got harder this week, with word that Simon Buckett has just resigned as chief financial officer. He took the job in July, replacing Paul Santos.)
Further, coming up with the cash will be a formidable task. Gold Mountain "paused" its mining operations for the Christmas holiday break, and Elk "remains paused at present." Also on pause, it appears, is the release of the company's third quarter financials, which were due by the end of December. The quarter presumably contained more doom and gloom, as Gold Mountain racked up a loss of nearly $1-million in its quarter ended July 31, 2023, thanks to "less-than-anticipated production."