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Almonty Industries Inc T.AII

Alternate Symbol(s):  ALMTF

Almonty Industries Inc. is a Canada-based company, which is engaged in the mining, processing and shipping of tungsten concentrate, as well as the exploration and evaluation of its projects. The Company operates through four segments: Los Santos Mine, Panasquiera Mine, Valtreixal Project, and Woulfe. The Los Santos Mine is located in Spain whose operations relate to the exploration and mining of Tungsten. The Panasqueira Mine is located in Covilha Castelo Branco, Portugal, whose operations relate to the exploration and mining of tungsten, as well as the production of copper and tin concentrate by-products. The Valtreixal Project is located in Spain whose operations relate to the exploration and evaluation activities of the Valtreixal tin/tungsten project. Woulfe’s properties are located in Gangwon Province, Republic of Korea. The Woulfe's operations relate primarily to the exploration, evaluation and development of the Sangdong Project.


TSX:AII - Post by User

Post by 5ilverlining808on Dec 07, 2021 7:27am
437 Views
Post# 34205262

Court Hearing and Raahen Seutu Article: Quick Translation

Court Hearing and Raahen Seutu Article: Quick TranslationOtso Gold’s ex CEO is suspected of gross misconduct. The company, which owns the Raahe gold mine, is applying for corporate restructuring, with a debt of almost EUR 75 million. Brian Wesson, who has been the managing director of Otso Gold Oy, which owns the Laiva gold mine in Raahe since summer 2019, has been imprisoned. He was arrested by the Oulu District Court last Friday. Through his Lionsbridge Capital company, a 63-year-old Australian in charge of mining administration services is suspected of gross embezzlement and gross payment fraud. In the public report of the district court, the time of committing the suspected crimes is stated to be November 30, and the place of the crime is Raahe. The detention trial was held without the public and the trial documents have been ordered to be kept confidential, at least for the time being. The case must be prosecuted no later than 21 April 2022. Dan Andersson has been appointed interim CEO of Otso Gold and Thomas Dillenseger has been appointed interim CFO. They represent the restructuring firm Alvarez & Marsal, which is now responsible for the day-to-day operations of the mining company and the stabilization of its finances and operational management. Brian Wesson, who succeeded Otso Gold through Lionsbridge Capital, his sons Clyde Wesson and Yvette Harrison resigned on November 30 and also resigned on the board of the mining company. Wesson Jr. served as Otso Gold’s Executive Vice President and Harrison’s title was Director. Otso Gold has also announced that Martin Smith, who was appointed to the Board at the beginning of the year, has resigned from the Board for personal reasons. The CCAA, the Canadian Companies' Creditors Arrangement Act, which granted the creditor protection to the mining company, says in a statement about Lionsbridge Capital's departure from Otso Gold. According to it, as a result of concerns about Lionsbridge's operations, Alvarez & Marsal was acquired to restructure the mining company as early as November 24th. According to the press release, after the resignation of Lionsbridge executives, it was discovered that their office at the Raahe Gold Mine had been emptied, including the mining company’s computers, and that the mining company’s credit card had unrecorded expenses. In addition, it is said that gold has been sold, but that the sales revenue has not been recognized as income for Otso Gold. The CCAA says that based on these findings, Otso Gold was contacted by the Finnish Border Guard and reported on possible criminal activity in the company. Brian Wesson, who was arrested on Friday, was arrested by police. Hannu Mensonen from the Raahe Police Station of the Oulu Police Department does not say where the suspect was arrested. Mensonen does not comment at this stage on whether other persons have been apprehended in connection with the suspected crimes. Trading in Otso Gold shares on the Toronto Stock Exchange was temporarily suspended at the company's own request on December 3. On the same day, the mining company announced that it had received an order from a Canadian court to defer its creditor claims. Protection against creditors allows the company to present debt restructuring arrangements to its creditors. In Finland, Otso Gold Oy also submitted an application for reorganization proceedings to the Oulu District Court on 3 December. The company states in the application that it has had to initiate a reorganization application with great urgency in order to combat the imminent insolvency and prevent the recovery of some key creditors. According to the application, the sudden deterioration of Otso Gold's financial position has been partly due to significant deficiencies in the company's governance, of which the current main shareholders have only recently become aware. For this reason, a new Board of Directors and Operational Management have been appointed for the Company on November 30th. Otso Gold Oy has a total debt of approximately EUR 74.6 million, of which approximately EUR 60 million is intra-group debt to the parent company Otso Gold Corporation.
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