Investors of insolvent gold mining company expanding class action suit
The former management team and underwriters of a collapsed Red Lake gold mining company are being held to account by out-of-pocket shareholders.
A proposed securities class action suit filed in the Supreme Court of British Columbia against the former directors and officers of Pure Gold Mining of Vancouver is being expanded to seeking compensation for damages and losses incurred from their investments in Pure Gold Mining.
They contend the gold company failed to properly disclose the true state of the company’s dire operational and financial predicament at its one and only mining asset in Red Lake. The company entered CCAA protection in October 2022 and was eventually sold to West Red Lake Gold Mines.
The proposed class action was filed in April 2022 to include investors who participated in share offerings in May and September 2021, and February 2022. It’s now been expanded to include those who invested in securities of Pure Gold between March 31, 2021 and Oct. 21, 2022 in both the primary and secondary market, according to KND Complex Litigation.