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Misleading the stock market is a serious offence – Guyana Goldfields Shareholders

Mar 10, 2019 News

By Kiana Wilburg

A group of concerned shareholders who hold no less than five percent shares in the Canada-based Guyana Goldfields Inc., is concerned about the firm’s misleading statements on an Environmental Permit it was granted by the Environmental Protection Agency (EPA).
Its comments in this regard are in wake of a Kaieteur News article on the matter.
This newspaper had reported that the company gave the impression that it received the permit to continue with its underground mining initiative. It was later revealed by EPA Head, Dr. Vincent Adams, that the permit was only for the company to collect data that would inform its underground mining proposal.
Adding to what Kaieteur News revealed, the concerned shareholders highlighted that the company even claimed in a new investor presentation dated February/March 2019 that it has “received EPA approval for underground development” and that it is now “fully licensed and permitted for underground development.”
The shareholders said that these statements clearly imply that the company received the necessary permit to resume certain activities at the Aurora Gold Mine, which directly contradict specific statements made by Guyanese government officials.
The Concerned Shareholders said that they are deeply unsettled by this gross disconnect in statements.
They said, “Whether or not the company is legally able to carry on operations at, and execute on its business plan for the Aurora Gold Mine, is a material fact that goes to the core of the Company’s business.
“Incomplete and/or misleading disclosure on a fundamental material fact is extremely serious and troubling.”

WORSENING RELATIONSHIP
The concerned shareholders also noted that the company’s relationship with the government in Guyana has taken several blows over the past year as a result of a series of missteps by the Company, including a history of non-compliance with EPA regulations and a mass-firing of 80 local workers last summer.
The concerned shareholders said they are worried that, along with this latest blunder, the company’s mounting transgressions may yield serious and long-term consequences for Guyana Goldfields’ mining operations.
“The fact that this story is splashed on the front pages of the Guyanese media and that Government officials are publicly chastising Guyana Goldfields, is not only embarrassing but it further puts into jeopardy, the Company’s relationship with the government.
“With its primary asset in Guyana, it’s essential that they have good relationships with Guyanese officials and abide by all rules and regulations,” said Patrick Sheridan, one of the largest shareholders and former Executive Chairman and former director of the Company.
He added, “Potentially misleading the (stock) market is a serious offence. It’s becoming more and clearer that shareholders need a new board and management team with a fresh and honest approach to dealing with government officials, shareholders and the public at large. It’s time for change.”

ONGOING PATTERN OF MISLEADING SHAREHOLDERS
The concerned shareholders also believe that Guyana Goldfields’ latest claims are just another example of the current Board of Directors misleading shareholders.
The concerned shareholders believe that the Board has consistently and deliberately twisted or omitted the reasons for the company’s poor results, including excuses such as the rainy season, slow equipment mobilization and most recently, problems with the resource model.
They said, too, that the company also recently issued a press release mischaracterizing Concerned Shareholder Patrick Sheridan’s tenure with the Company, desperately trying to distract shareholders from the massive value destruction of over $1 billion since 2016 that Guyana Goldfields’ shareholders have had to endure.
Picture saved in Sunday as Guyana

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