The Burritos Connection Undesirable Use of Proceeds ??
Reco is seriously indebted to the Mexicans in the amount of Can$48.2 million for work obligations. The debts were overdue. The Mexicans can now demand payments on the surety bonds security.
As of the latest financials Sept 30, 2021:
"...ReconAfrica has become a party to certain commitments related to the Chiapas properties in Mexico. Per the terms of the associated licence agreements, the Company is committed to the completion of certain work programs with a total estimated cost of US$37.8 million ($48.2 million) by January 29, 2022. The Company has requested further extensions to the completion of the work programs, however, while such extensions have been granted in the past, there is no assurance a further extension will be granted. Renaissance entered into four surety bond agreements with a global financial company in aggregate of approximately US$15,263,300 ($19,446,971), as required by the Comisin Nacional de Hidrocarburos (the “CNH”), towards the guarantee of performance of the minimum work programs. To date US$10.6 million ($13.4 million) in work program costs have been submitted to the CNH. Failure to complete the work programs may result in the CNH seeking remedy by acting on the surety bonds or seeking further action against the Co."