Core Gold Initiates Lawsuit Against Former CEO
TSX VENTURE: CGLD
VANCOUVER, British Columbia, June 13, 2019 (GLOBE NEWSWIRE) -- Core Gold Inc. (“Core Gold” or the “Company”) (TSXV: CGLD, OTCQX: CGLDF) announces today that it has filed and served a Notice of Civil Action in the Supreme Court of British Columbia against its former CEO, Keith Piggott.
The lawsuit claims that Mr. Piggott misappropriated US$64,000 in corporate funds for his own use and, without board authority, in 2018 borrowed US$1,960,000 in Ecuador at annual rates of interest of between 26.06% and 30.06%, which are far higher than prevailing market rates of interest. Core Gold has suffered direct financial loss as result. In addition, Mr. Piggott has made defamatory statements against the directors of Core Gold that are intended to imply that the directors of Core Gold (other than himself) are dishonest, corrupt and acting contrary to the best interests of Core Gold. Mr. Piggott’s statements are false. The lawsuit seeks to recover damages, including punitive damages, in an amount to be assessed by the court, for the misappropriation, improvident borrowing, and defamatory statements.
As Core Gold noted in its press release of March 19, 2019, Mr. Piggott was terminated for cause as the CEO of Core Gold in March 2019 for, among other reasons, this misappropriation and improvident borrowing. Mr. Piggott has never challenged his termination for cause.
Mr. Piggott has not stated whether he intends to defend the lawsuit or not.
About Core Gold
The Company is a Canadian based mining company involved in the mining, exploration and development of mineral properties in Ecuador. The Company is currently focused on gold production at its wholly-owned Dynasty Goldfield project. Mineral is treated at the Company’s wholly-owned Portovelo treatment plant. The Company also owns other significant gold exploration projects including the Linderos and Copper Duke area in southern Ecuador all of which are on the main Peruvian Andean gold-copper belt extending into Ecuador.
For further information please contact:
Mark Bailey, Interim CEO, Director
Suite 1201 – 1166 Alberni Street
Vancouver, BC, V6E 3Z3
Phone: +1 (604) 345-4822
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.