By Robb M. Stewart
Orea Mining won’t file its financial results for the latest fiscal year on time as it faces a significant working-capital shortfall after failing to secure the regulatory approval needed to buy the outstanding stake in a French Guiana gold project.
The mining company said Wednesday that it won’t file its audited annual financial statements, management discussion and analysis and related officer certifications for the fiscal year ended Sept. 30, as required under Canadian securities laws after not securing Canadian government approval to close a deal to buy 100% of the Montagne d’Or project.
Orea said it has a working-capital deficit and has seen a material reduction in staff, leaving it unable to pay its auditors. The annual audit for the last fiscal year hasn’t begun and won’t be completed by the filing deadline.
The company said it is looking at financing options to fund the audit process and its working capital deficit, and it seeks to complete the audit of its annual financial statements to be in a position to file by Feb. 27.
In late November, Orea said it decided not to proceed with plans to buy Nord Gold’s roughly 55% stake in Montagne d’Or.
Write to Robb M. Stewart at robb.stewart@wsj.com
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