Orea Mining to delay 2023 financial statements filing

Canadian gold explorer and developer Orea Mining (TSX: OREA; US-OTC: OREAF) 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 delay is the result of not getting the needed regulatory approval to acquire the remaining interest in a gold project in French Guiana.

Orea 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 Nordgold’s 55.01% interest in the Montagne d’Or project in French Guiana, but the Canadian government didn’t 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 oz. per year average over a 12-year mine life. Production over the first 10 years of the mine is pegged at around 237,000 oz. annually.  

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

Orea 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 it by Feb. 27.

The company last March optioned the Antino gold project in neighbouring southeastern Suriname from Nana Resources to Founders Metals (TSXV: FDR), which can earn 75% ownership of the project. Nana holds the remaining 25%.