Gold miner IRL's woes deepen, loses share listing
Beleaguered Peru-based gold miner Minera IRL lost its London stock listing, the latest in a series of setbacks to the company's attempts to put its finances in order and develop its US$165mn Ollachea gold project.
IRL, which was forced to suspend share trading in September amidst an ongoing power struggle, said it was unable to appoint a new nominated advisor, a condition to maintaining a stock listing.
"The board of directors intends to relist the shares as soon as practical to enable shareholders to deal in the company's shares and continues to look at various options to achieve this," the Lima-based company said in a statement.
The delisting comes after BDO LLP last week resigned as the company's auditors after IRL refused to pay the accounting firm to carry out additional procedures that BDO deemed necessary to rule out fraud in the company's financial statements. IRL has delayed publication of its 2015 earnings report.
IRL said last month it reached an agreement to regain control over its Peruvian subsidiary, ending a seven-month power struggle and halting an investigation into accusations of "impropriety" against Diego Benavides, head of the company's local unit.
Benavides, a corporate lawyer who heads the company's Mineral IRL SA and Minera Kuri Kullu subsidiaries and co-founded the company in 2000, has denied the charges. Benavides was not immediately available to comment on the delisting.
The company, which posted a US$43.4mn loss in 2014 due to slumping gold prices, compared with a US$34mn loss in 2013, said in January it was unable to pay a US$2.2mn promissory note to Rio Tinto. The company may shut down its ageing Corihuarmi mine, chairman Jaime Pinto said in November.
The company, which pulled out of Argentina in 2014, is pinning its hopes on the start-up of Ollachea in the Puno region of Peru to replace dwindling output at Corihuarmi, where production was expected to total 22,000oz gold in 2015, down from 23,654oz in 2014 and 25,220oz in 2013. The Ollachea project in Puno region, which has 1Moz in gold reserves, will produce an estimated 100,000oz/y.
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