Ascot reports class action filing
Canadian miner Ascot Resources has vowed to defend itself against a newly filed lawsuit in Ontario, which alleges misrepresentation in the company’s public disclosure relating to its Premier gold mine.
Ascot said on Wednesday that it had learned of a statement of claim filed in the Ontario Superior Court of Justice naming the company and certain other parties as defendants. The plaintiff is seeking certification as a class action, unspecified damages, and declaratory relief.
CEO and director Jim Currie stressed that Ascot believed the allegations were “unfounded and without merit”.
Ascot did not name the party filing the claim. Securities class action litigation firm Berger Montague last month said it was investigating potential violations of the federal securities laws on behalf of shareholders of Ascot. The law firm stated that between January 22 and September 5, 2024, Ascot reported that after its February 22, 2024 offering of securities that it would be fully-funded to complete the construction of the Premier gold project, progress through the ramp-up phase to commercial production and steady state operations. The company also reported that commercial production was anticipated to happen during the third quarter of 2024, and as a result it would be self-funded for at least 12 months out.
On September 6, 2024; however, the company reversed course on its plans for the Premier mine, reporting multiple operational issues and suspending all operations until additional capital was raised. Following these revelations, the price of Ascot securities suffered "substantial declines on abnormally high volume".
Ascot placed the project on on care and maintenance in June after failing to reach a satisfactory cost agreement with its mining contractor. The company also launched a strategic review process to explore potential alternatives.
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