Serabi Gold PLC - gold miner in Brazil - Fires two of its Brazil-based senior managers after discovering up USD200,000 in unsubstantiated cash withdrawals dating back to 2015, with USD80,000 of these made during 2020. Serabi also has "identified a number of other potential irregularities relating to expense claims and other minor items which may require further review". It has engaged forensic accountants to help its UK auditors. Says employment contract terminations may result in legal proceedings in Brazil, so will limit further comment. Still expects to issue financial results prior to June 30.
Separately, Serabi says drilling on the Mogno and Ipe gold veins at the Palito mine has confirmed depth extensions by over 100 metres below the lowest mined level. Gets results has high as 51.76 grammes of gold per tonne at Mogno and 36.62 grammes at Ipe. "The Ipe and Mogno lodes are increasing their contribution of the Palito Mine ore feed due to their relative shallow depth and high grades," comments Serabi Chief Executive Officer Mike Hodgson. "Both these veins are being mined less than 200 metres from surface so are easily accessed and with the main ramp already deepened to over 350 metres from surface, both Ipe and Mogno do not require much capital development."
Current stock price: 72.40 pence
Year-to-date change: down 25%
By Tom Waite; thomaslwaite@alliancenews.com
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Serabi (SRB)