Orea Mining to delay 2023 financial statements filing

Orea Mining added it is looking at options to fund the audit process and solve its working capital deficit.

Canadian gold explorer and developer Orea Mining (TSX: OREA) (OTCQB: OREAF) (FSE: 3CG) said on Wednesday that it won’t file its financial results for the latest fiscal year on time due to a lack of working capital.

The company said the shortfall was the result of having been unable to obtain the necessary regulatory approval to acquire the remaining interest in a gold project in French Guiana.

Orea Mining noted that together with not filling its audited annual financial statements, it won’t be able to publish management discussions, analysis and related officer certifications for the fiscal year ended Sept. 30, as required under Canadian securities laws. The Vancouver-based firm  was expected to file the statements by Dec. 29, 2023.

Orea intended to acquire Norgold’s 55.01% interest in the Montagne d’Or gold project in French Guiana, but the Canadian government did not approve the deal.

Ottawa’s decision prompted Orea to abandon plans to become the only owner of the open pit gold project, which is expected to generate 214,000 ounces per year average over a 12-year mine life. Production over the first 10 years of the mine is pegged at 237,000 ounces on annual average.  

The company said it has since experienced a material reduction in staff, leaving it unable to pay its auditors.

Orea Mining added it is looking at options to fund the audit process and solve its working capital deficit. It said it expects to be able to complete the audit of its annual financial statements and file by Feb. 27.