GUYANA GOLDFIELDS INC. (TSX: GUY)
Ontario Superior Court of Justice, Court File No.: CV-20-00638384-00CP
This proposed securities class action arises out of the Defendants’ misleading disclosures concerning gold production at the company’s Aurora Gold Mine, which is located in Guyana, South America. The claim has been brought on behalf of investors who acquired common shares of Guyana Goldfields between December 14, 2017 and October 30, 2019.
The Aurora Gold Mine is the main operation asset of the Defendant, Guyana Goldfields. On December 14, 2017, the Defendant released statements announcing that it was preparing an Optimized Mine Plan in order to “smooth” forecast production and cost profiles, reduce strip ratios, reduce capital and operating costs, accelerate cash flow, and provide more consistent operating and financial results. The Mine’s optimized life plan was issued in February 2018, and it was further revised in early-2019. During this period, Guyana Goldfields consistently failed in achieving production results it had represented to investors. In October 2019, the Defendants disclosed that the Mine’s production and results had been negatively impacted as a result of on-going operational issues. In February 2020, the Defendants disclosed that they were going to suspend ore production at the Aurora Gold Mine while they worked on a comprehensive mine plan.
The Plaintiff alleges that the Defendants’ disclosure documents misrepresented the operations at the Aurora Gold Mine in violation of Canadian securities laws. As the truth emerged, Guyana Goldfields’ share price plummeted, and the investors incurred significant damages. The action seeks to recover damages on behalf of investors.
Claim or Motion for Authorization issued: March 18, 2020
Class Period: December 14, 2017 to October 30, 2019
Motion Record in Support for Statutory Claim Due: TBD
Shareholders’ Canadian Counsel: Andrew Morganti and Sajjad Nematollahi, Morganti & Co.
Corporate Defendants’ Canadian Counsel: Lara Jackson, Cassels Brock