Gratomic Inc. has allowed several of its mining claims in Brazil, including the Capim Grosso Property, to expire as part of a strategic decision to concentrate its resources on the Aukam Property in Namibia.
The company explained that the costs of further exploration and development at Capim Grosso were not justified under the current market conditions.
However, Gratomic revealed a more concerning development: its former Chief Operating Officer (COO), Armando Farhate, allegedly wrongfully transferred the remaining claims, on which the company had made substantial investments, without proper authorization.
Farhate, who also served as Gratomic’s Head of Graphite Marketing & Sales, resigned from his roles in July of this year.
Despite stepping down, he reportedly did not relinquish control over Gratomic’s indirect subsidiary, Zumbi Mineração Ltda, the entity holding the Capim Grosso Property.
Currently, Farhate serves as the CEO of Bahia Graphite, while Gratomic’s former Country Manager in Brazil is now the President of Bahia Graphite.
Notably, Bahia Graphite, through its wholly-owned subsidiary Bahia Brazil, references Gratomic’s published mineral resource estimates for the Capim Grosso Property in its corporate presentations.
According to Gratomic, Farhate filed a request to transfer the remaining mineral rights of Capim Grosso to Bahia Graphite Ltda with the Agência Nacional de Mineração (ANM).
This transfer, made without Gratomic’s authorization, was allegedly executed in exchange for the settlement of personal debts owed to Farhate and the former Country Manager for unpaid director and consulting fees. Gratomic emphasized that the ANM has not yet reviewed or approved the transfer request.
Gratomic further stated that Farhate wound up Zumbi Mineração Ltda without providing an accounting for over US$1.9 million advanced by Gratomic for the exploration of the Capim Grosso Property.
In response, Gratomic has retained legal counsel in both Brazil and Canada to pursue the annulment of the unauthorized transfer, recover the Capim Grosso Property, and initiate litigation against Farhate and any third parties involved.
The company intends to seek damages for what it describes as wrongful actions benefitting Farhate personally.
Gratomic expressed confidence that the courts in Brazil and Canada will recognize the misconduct and ultimately rule in its favor.
Once the Capim Grosso Property is recovered, the company plans to identify a buyer who can provide fair compensation for the work already completed on the asset.
Despite these challenges, Gratomic reaffirmed its commitment to advancing its flagship Aukam Property in Namibia, a project that remains central to its strategic priorities.
Disclaimer: None of the allegations against Armando Farhate or Bahia Graphite have been proven in court.
SOURCE:theextractormagazine.
