By Robb M. Stewart
Orea Mining, a mining company, has encountered difficulties in meeting its financial reporting obligations for the latest fiscal year. This is due to a significant working-capital shortfall caused by the failure to secure regulatory approval for the acquisition of the remaining stake in the Montagne d’Or gold project in French Guiana.
Canadian securities laws require the timely filing of audited annual financial statements, management discussion and analysis, and related officer certifications for the fiscal year ending on September 30. However, Orea Mining announced on Wednesday that it will not meet these requirements as it did not obtain Canadian government approval to proceed with the purchase of 100% ownership of the Montagne d’Or project.
Due to a working-capital deficit and a significant reduction in staff, Orea Mining is unable to fulfill its financial obligations, including payments to auditors. Consequently, the annual audit for the previous fiscal year has not commenced and will not be completed by the filing deadline.
To address these challenges, Orea Mining is exploring various financing options to fund both the audit process and its working capital deficit. It is actively seeking to complete the audit of its annual financial statements in order to meet the filing deadline of February 27.
In late November, Orea Mining made the decision not to proceed with its plans to acquire Nord Gold’s approximate 55% stake in the Montagne d’Or project.
