TORONTO (miningweekly.com) – A director of Woulfe Mining, which is advancing the Sangdong tungsten mine, in South Korea, has resigned from the board to avoid a potential conflict of interest as the company readies itself for a significant financing to rectify its current financial position, further delineate its mineral resource model and determine a work plan.
The company said that Nathan Goodman, who is a significant stakeholder in the company through Dundee Corporation, had resigned owing to Dundee expecting to participate in further financing of the company, either directly or indirectly.
Woulfe cautioned that there were no assurances that a financing would be completed in the future on terms acceptable to the company, or at all.
Woulfe in May said it was facing a cash crunch following a company-wide investigation after the resignation of the former executive management team in February.
The board and the acting CEO Hubert Marleau initiated a comprehensive investigation into the company and its subsidiaries to ensure business continuity. The investigation had identified issues relating to liquidity and the ability of the company and its subsidiaries, including Sangdong Mining, to meet various payables beyond the next few months.
The company’s TSX-V-listed shares declined by 13.04% on Monday to close at C$0.10 apiece, having lost 60% of its value in the last six months.