CALU calls loan early on GGA and forces sale of assetsPLEASE Read the [url=https://javascript:submitFiling(document.form1685985057418,'AcceptTermsOfUse');]Management Information Circular[/url] posted 1st June 2023.
CALU calls loan on GGA, for which the GGA had until 31 Dec 2023 to payback in full. Through a subsiduary of CALU, MER they will purchase the assets of Minas de Oroco (Mexican subsiduary of GGA) as settlement of the debt. This leaves Minas de Oroco with all $11M in unpaid liabilities and no tangible assets.
It looks like the plan is to bankrupt the GGA subsiduary Minas de Oroco, with CALU (MER) running off with the asets.
CALU Oportunity Fund LP was created by the ex GGA CEO John McClintock 9 March 2022 with backers that includes some participants in the fund who are not arms length from Goldgroup. (See US SEC FORM D filings on CALU. As we cannot see who the investors of the fund are, we do see that they share the same office as GGA.
I beleive the only hope for GGA investors is that GGA can extract enough from the leachpads to stave off collapse of Minas de Oroco. The Cerro Prieto Mine has no current reserves or resources. I pitty all of the contractors and supliers that have kept the company afloat to this point and will be left with nothing.
Also from the Management Information Circular, Mr. Balic gets a golden parachute out of this:
...The employment agreement provides for a base salary, bonus payments and reimbursement of expenses, and includes, among other things, customary provisions regarding confidentiality and non-competition. The employment agreement with Mr. Balic provides that the agreement can be terminated upon three months notice by the Company or immediately for cause. If his employment is terminated by us without cause, Mr. Balic will be entitled to a severance payment of 50% of the incentive bonus due to him. Under the agreement with Mr. Balic, upon a change of control, as defined below, the Company will pay Mr. Balic an amount equal to 1.5 times his annualized salary.
“Change of Control" under the agreement with Mr. Balic means the occurrence of any one or more of the following events: (a) ....; (b) the sale, lease, exchange or other disposition, in a single transaction or a series of related transactions, of all or substantially all the assets, rights or properties of the Company to any other person or entity, other than the disposition to a wholly or majority-owned subsidiary of the Company in the course of a reorganization of the assets of the Company;...
PLEASE DO YOUR OWN DUE DILLIGENCE.