Gratomic Inc. has allowed some of its mining claims in Brazil, comprising the Capim Grosso Property, to expire to focus attention and resources on its Aukam Property in Namibia.
The company says the costs of further exploration and development of the Capim Grosso Property would have drained the resources, which were not justified in the current market environment.
According to a statement this week, Gratomic says its former chief operating officer, Armando Farhate, had wrongfully transferred the remaining claims on which the company had made significant expenditures.
Farhate, who was also the head of graphite marketing & sales, is one of the people who resigned from Gratomic in July this year.
He was bylaws appointed for Gratomic’s indirect subsidiary Zumbi Mineração Ltda, which held the Capim Grosso Property.
Gratomic said that when Farhate resigned as an officer and director of Gratomic, he did not relinquish control of Zumbi Mineração Ltda.
Farhate is the Chief Executive Officer of Bahia Graphite, and the former Country Manager for Gratomic in Brazil is the President of Bahia Graphite.
Bahia Brazil is a wholly-owned subsidiary of Bahia Graphite Corporation, a British Columbia-incorporated company, that includes in its corporate presentation a reference to the mineral resource estimate published by Gratomic for the Capim Grosso Property and refers to the 12 tenements previously developed by another company as the Lajedo Graphite Project.
He reportedly wrongfully filed a request for the total assignment and transfer of the mineral rights of the remaining claims comprising the Capim Grosso Property to Bahia Graphite Ltda with the Agência Nacional de Mineração, but the ANM has not yet reviewed or approved any such transfer agreements.
Farhate implemented the wrongful transfer of the Capim Grosso Property to Bahia Brazil, at his own and exclusive discretion, in exchange for a release and settlement of debts that were owed to him personally by Gratomic for director fees and consulting fees as the Chief Operating Officer of Gratomic, along with a release and settlement of debts that were consulting fees and debts owed by Gratomic to its former Country Manager.
Farhate wound up Zumbi without accounting for the more than US$1.9 million advanced to Zumbi by Gratomic to explore the Capim Grosso Property.
The company has retained counsel in Brazil and Canada to provide advice and guidance concerning the annulment of Farhate’s wrongful acts, recovery of the Capim Grosso Property, and proceeding with litigation against Farhate and any third parties acting in concert with him for wrongfully transferring the Capim Grosso Property to Bahia Graphite for his benefit.
The company intends to pursue all legal avenues in Brazil and Canada to recover the Capim Grosso Property and seek damages from Farhate (and any third parties acting in concert with Farhate) for his wrongful acts.
The company is confident that the courts of Brazil and Canada will recognize the wrongful acts committed by Farhate.
After recovering the Capim Grosso Property, the company intends to find a buyer to adequately compensate the company for the work performed in Brazil on the Capim Grosso Property.
At the same time, the company remains focused on advancing the Aukam property. None of the company’s allegations above have been proven in law.
