ASX-listed, Mali-focussed gold miner Firefinch reports that a “preventive procedure” has been undertaken at the Commercial Court of Bamako, in Mali, suspending or prohibiting all individual lawsuits for the Morila gold mine.

Firefinch, with a minority representation on the board of Morila SA, remains the 80% shareholder of Morila SA – the Malian company that owns and operates the Morila gold mine – but no longer funds, or provides advice to Morila.

The Commercial Court of Bamako has also ordered the appointment of an expert to prepare a report on the financial and economic situation of Morila SA.

Firefinch, which is still trying to find a new owner for Morila SA, says it is not aware of the court process being initiated, nor is it a party to the proceedings. It also does not expect the outcome of the process to impact it.

Any potential new owner for the Morila mine would need to be suitably funded to service Morila SA’s creditors, maintain operations and see the project reach its full potential for the benefit of all stakeholders, Firefinch says.

Firefinch also says it has not received any financial or operational reports, or other pertinent information since funding of Morila SA ceased on November 3, 2022.

Firefinch says it is continuing to liaise with Morila SA and local authorities regarding the possible mitigation of the impact of Firefinch’s decision to cease funding the Morila mine, on the mineworkers and the local community.

Firefinch states that it did not receive a copy of the petition or documents introduced before the court by Morila SA’s lawyers to request the opening of the preventive procedure and says the Morila mine is continuing to operate.

“Firefinch understands that as soon as the expert’s report is filed, the court will summon the debtor – Morila SA, to appear at a non-public hearing along with the expert, as well as any creditor the court deems useful to hear from.

“If the court establishes a default on payments, it can rule on the legal redress or the liquidation of assets,” Firefinch notes.