PETAQUILLA MINERALS the troubled Canadian mining company that has been extracting gold in Panama since 2009, has failed to meet the British Columbia Securities Commission (BCSC) deadline for delivering its financial report for the fiscal year 2013-2014 which expired on July 31.
The company which operates the Molejón mine in the district of Donoso, Colon Province, was to deliver the information on October 29, but requested an extension of two months citing "accounting delays".
The extension period ended on December 29 but the financial report was never delivered to the Canadian regulator.
The report was key to the future of the mining operation paralyzed from a year ago. It report should reflect losses last year, the capital injection needed to save the company and plans to extract gold, reports La Prensa.
Thw lack of information revealing the future of the company, has led the Regulatory Agency Industry Investment Canada(IIROC) to order the temporary suspension of trading of the shares of Petaquilla Minerals.
In a statement the company says that the decision to suspend trading of the action stems from the negotiations that remain with Canadian regulators, who have now granted a second extension, this time for 30or
The note indicates that it is to close a deal with a Panamanian group to create a $25 million trust
"Once this trust is established it will supply the money required to restore liquidity and revive the operations of the mining project. The interest of the company in the first instance, is cleaning up in labor debt, "the company said in the statement.
The trust would be established in January , but the company did give an estimated date for its creation.
On December 22 the company sent a note to the Ministry of Trade and Industry (Mici) explaining the negotiations being conducted to solve its financial problems.
Because of its insolvency mining at Molejón has been paralyzed since late 2013.
Last year Richard Fifer, Petaquilla president, said in a statement sent to the BCSC that delays in the sale of assets to First Quantum Minerals for $60 million, prevented tthe audit to close the fiscal year.
Fifer said the main delay was given when registering changes in additioto a delay in receiving funds agreed at the Public Registry of Panama transaction.
Last May, Petaquilla and First Quantum, both with concessions to mine gold and copper in Donoso, announced they had agreed to sell certain assets, including the transfer of thousand 483 hectares plus rights to the Llano Grande road.
In mid-December the company had reportedly hoped to deliver information before BCSC deadline but did not fulfill the promise.
In addition to the actions taken by securities regulators of Canada, Petaquilla Minerals is also in the sights of the Toronto Stock Exchange where its shares are listed.
On November 27 the Toronto Stock Exchange (TSX) reported that Petaquilla Minerals has until January 26, 2015 to comply with all the requirements under Canadian securities laws if it wants to keep the PTQ symbol with which its shares are listed.
Through internet forums, a group of shareholders have BCSC called for the restructuring of the mining and urgent changes in the board headed by Fifer.
Petaquilla had last October, signed a loan agreement with the US investment fund c Imppetrol Investment, SA that would make available $60 million available between November and December 2014.
Without elaborating, the company announced that it had not completed the loan and was seeking new financing.
Petaquilla is not only under the scrutiny of the Canadian authorities: in Panama, the Social Security Fund (CSS) and the Ministry of Trade and Industry (Mici) havd announced the possible breach of laws.
The CSS lodged a criminal complaint against the company due to non-payment of its share of social security for workers.
According to estimates of the Ministry of Labor and Workforce (Mici)Development, Mici) Petaquilla owes $3.8 million to 604 workers and other payments to former collaborators
District officials in Donoso say the company has not paid taxes for this year and added that there is no record of having made the payments to 2013.