Serabi Gold plc

Financial and Accounting Update

Financial and Accounting Update

For immediate release

11 May 2021

 

Serabi Gold plc

(“Serabi” or the “Company”)

Financial and Accounting Update

 

Serabi issued a news release on 1 April 2021 advising that, during the course of audit work in Brazil, the Company had become aware that certain cash withdrawals made during 2020, and amounting to approximately US$80,000, lacked documentary support. Following further enquiries undertaken by the Company and its legal advisers in Brazil, the Company advises that it has commenced proceedings to terminate the employment contracts of two of its Brazil-based senior managers.

During the course of the Company’s on-going enquiries, further unsupported cash withdrawals have been identified dating back to 2015 of approximately US$120,000 (at current exchange rates), making the total level of unsubstantiated cash withdrawals approximately US$200,000. The Company has also identified a number of other potential irregularities relating to expense claims and other minor items which may require further review. The Company has retained the services of local forensic accountants to assist its UK auditors in order that the auditors can, as quickly as possible, conclude their audit procedures, permitting the Company to publish its Financial Statements for the 2020 calendar year. The Company remains confident that based on the results of the enquiries to date, the Financial Statements will be issued prior to 30 June 2021.

The Company considers that the termination of the employment contract of the managers may result in legal proceedings in Brazil involving the Company’s subsidiary Serabi Mineracão SA. At this time therefore, save for any regulatory disclosure obligations, further details regarding the on-going enquiries in respect of these matters may be restricted so as not to prejudice any future legal proceedings.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged for the release of this announcement on behalf of the Company was Clive Line, Director.

 

Enquiries:

 

Serabi Gold plc  
Michael Hodgson Tel: +44 (0)20 7246 6830
Chief Executive Mobile: +44 (0)7799 473621
   
Clive Line Tel: +44 (0)20 7246 6830
Finance Director Mobile: +44 (0)7710 151692
   
Email: [email protected]  
Website: www.serabigold.com  
   
Beaumont Cornish Limited

Nominated Adviser
 
Roland Cornish Tel: +44 (0)20 7628 3396
Michael Cornish Tel: +44 (0)20 7628 3396
   
Peel Hunt LLP

UK Broker
 
Ross Allister Tel: +44 (0)20 7418 9000
   
CAMARCO

Investor and Public Relations
 
Gordon Poole Tel:+ 44 (0)20 3757 4980
Nick Hennis  
Emily Hall  

 

Copies of this announcement are available from the Company's website at www.serabigold.com.

 

Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this announcement.

 

ENDS