Soon-to-be listed Titan Minerals has been forced to retract exploration results outlined in its prospectus while easing any concerns over potential legal action after raising $6 million.
Peru-focused Titan (ASX:TTM), formerly the collapsed Minera Gold, will be reinstated to the ASX tomorrow after completing a recapitalisation in an oversubscribed placement.
However, ahead of its relisting Titan has been forced to retract a statement in the independent technical report of its prospectus because it was in breach of JORC Code and ASX Listing Rules.
JORC compliance refers to the mining industry’s code for reporting exploration results, mineral resources and ore reserves, managed by the Australasian Joint Ore Reserves Committee.
Under ASX listing rules, a business can’t republish exploration results unless the report refers to a market announcement containing an original disclosure, and the company confirms it is not aware of any new information or data that materially affects the exploration results.
Retracted statement could not be relied upon
In a late Friday evening announcement, Titan said the retracted statement could not be relied on by investors — but it didn’t consider the retraction to be material.
In a busy Friday, Titan directors also sought to a quell any fears of legal action against the company.
“So far as the directors of Titan are aware, there is no current or threatened civil litigation, arbitration proceedings or administrative appeals, or criminal or governmental prosecutions of a material nature in which Titan is directly or indirectly concerned which is likely to have a material adverse effect on the business or financial position of Titan,” the company said in a statement.
Titan also referred to previous claims made by Long Term Capital Fund, acting for Mineral creditors, in relation to ownership of shares in certain entities and said any legal proceedings commenced by LTCF would be vigorously defended.
Minera Gold entered voluntary administration in August 2015 after being unable to secure capital.