International law firm, Morganti and Co. has been contacted by several investors to investigate Guyana Goldfields Inc. about whether it released misrepresentations about its operations at its Aurora Gold Mine so as to artificially inflate its perceived investment quality and corresponding share price.
Morganti and Co. is a law firm that investigates, litigates, and resolves economic and financial disputes on a success-fee basis.
The firm noted that on July 16, 2018, Guyana Goldfields Inc. released a statement reducing its annual 2018 guidance numbers while blaming the late arrival of haulage trucks. Morganti noted that the price of shares subsequently dropped by approximately 22 percent in value.
The law firm said that investors who have realised or unrealised financial losses as a result of acquiring Guyana Goldfields Inc.’s securities after February 20, 2018, are welcome to contact them to further discuss their options. It said that the confidentiality of investors and whistleblowers will be respected. Contact can be made using the number (647) 344-1900 or email information at [email protected].
A group of shareholders also reported Guyana Goldfields
to the Toronto Stock Exchange regarding the loss of US$700M in shareholder value which was accumulating since 2016. The investors include Northfield Capital Corporation’s Robert Cudney, Donald Ross, Gretchen Ross, and Patrick Sheridan. Together, they own just about five percent of the Canada based mining company.
In its letter to the Toronto Stock Exchange, the Group said, “Until after a meeting is called [by the current board] and held and the direction of Guyana Goldfields Inc. is rightly determined by its shareholders, the TSX should carefully monitor and review any acquisition, financing, issuance of securities, or other defensive tactics or potentially-dilutive transaction or series of transactions proposed by Guyana Goldfields Inc., and require that any such transaction or series of transactions be approved by shareholders as a condition of TSX’s consent, including with respect to any issuance of securities by Guyana in connection with such transaction or series of transactions.”
Just recently, Guyana Goldfields received much backlash from the Environmental Protection Agency (EPA) for giving the public and its shareholders the impression that it received blanket approval to continue its underground mining project. Guyana Standard was the first to clarify this issue, with EPA Head, Dr. Vincent Adams categorically stating that the Permit which was granted only allowed for the collection of data and not the construction of an underground mine.
