Titan considering legal options over ex-Core CEO allegations

13th June 2019 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX-listed Titan Minerals on Thursday revealed that it has engaged Canadian and Australian litigation council to consider its legal options following comments made by the former CEO of takeover target Core Gold.

Keith Piggott’s appointment as president and CEO of Core Gold was terminated earlier this year after he failed to abide by directives set by the company’s board.

Core Gold in March told shareholders that Piggott had initially been put on notice in November last year, after incurring new debt at the subsidiary level without the approval, or notifying the company board, and for conducting activities at the company’s projects in Ecuador that were in breach of contractual obligations.

Core said that in addition to not abiding by the directives of the board, which included ceasing the use of his personal email for company activities, the board also believed that Piggott had misappropriated some $50 000 for his personal use, and had disclosed confidential information relating to the Titan merger to persons outside the company.

Since that time, Piggott has made a number of public comments and allegations surrounding environmental issues at Titan’s Tulin gold plant, in Peru, and about the activities of the company’s subsidiary Tulin Gold.

Titan on Thursday moved to clear its name, noting that while a technical report by the Regional Directorate of Energy and Mines found environmental violations, and that certain fines were imposed on Tulin Gold, an investigation by the Public Prosecutor and the Prosecutors Office concluded that no formal claims or proceedings should start, and that the investigation should not continue.

Titan acquired Tulin Gold during its acquisition of Adinda Resources in August 2018, with the Tulin plant only being operational for a period of three months under Titan’s watch, before it was shut down and vacated in early December of that same year.

Titan further noted that Adinda had obtained Peruvian legal advice to the effect that Adinda, and therefore Titan, was not responsible for any liabilities incurred by Tulin Gold with regards to its operation of the Tulin plant.

Titan has also assured shareholders that the company has no unfulfilled contractual obligations at the Tulin plant, despite allegations to the contrary by Piggott, and that the company had no involvement in an incident involving the discharge of firearms at the Tulin plant, as the incident occurred after Titan had shut down and vacated the plant.

Titan also disputed claims that it leveraged off the experience and qualifications of Dr Miguel Cardozo to raise funds.

Core shareholders earlier voted in favour of the C$72-million merger between Titan and Core, under which each Core shareholder will receive 20 fully paid ordinary shares in Titan, for every one Core share held.