3D Resources blows the whistle on Haiti gold investments
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3D Resources has canned its investment in two gold projects in Haiti because of permitting delays and disagreements with its partners.
The junior explorer (ASX:DDD) had been trying to secure permits to bring equipment into Haiti to begin drilling at the Grand Bois and Morne Bossa projects, but it was taking too long, according to 3D.
On top of that the company was involved in “various conflicts” with its Haitian partners after they called “force majeure”.
Force majeure is a legal term referring to unexpected circumstances that prevent someone from fulfilling a contract.
3D announced the planned acquisition of the two gold projects in April last year.
Since mid-September last year, the company’s share price has tumbled 73 per cent to trade at around 0.4c.
3D says it is now seeking a reimbursement of the money it has spent so far and compensation for loss.
Managing director Peter Mitchell did not want to disclose the sum the company is seeking for confidentiality reasons.
“We’re still in negotiation discussion with them as to a possible deal that might resolve this issue,” he told Stockhead.
“We’re trying to come to a more amicable settlement rather than go to the courts because obviously that’s not in anybody’s interest generally.”
3D still wants to develop the Grand Bois and Morne Bossa projects and is discussing a potential restructure of the deal.
“We’re trying to make something work here, but at the end of the day we have to put the stick in the sand to say that we can’t continue under the current arrangement,” Mr Mitchell explained.
“We do need, if we’re going to continue, to have a degree more control over what we’re doing and that’s been the problem in the past.”
3D is now reviewing other potential project opportunities in a variety of commodities.