Google gave me this translation, sounds a bit sneaky?The...

Google gave me this translation, sounds a bit sneaky?

The Australian mining consortium Consolidated Zinc LTD (CZL), which last year announced the reactivation of the mining project of Plomosas in Aldama, Chihuahua, for the production of lead, zinc and silver, failed to provide inside information to the Australian stock market. and adulterated contractual information of acquisition of the project to the detriment of its Mexican partners and investors in general.

In mid-2018 it announced that it would increase the percentage of ownership in the mine and a potential start of production, and its shares rose from 0.5 to almost 3.0 cents, but used misleading information regarding the acquisition of up to 100% of the operation. or dilute its partners, although said dilution was committed to a feasibility and valuation study, for which the perspective is biased as the public is informed.

Reports that the newspaper had access to let you know that since the announcement of the operation, which was projected to reach two thousand 500 tons per month of ore, starting in September 2018 with a trial month, according to the clause of The signed agreement with Grupo Mexico on September 4, allowed its shares to continue increasing.

The company launched a program of sale of shares to the public on September 24 with a limit of October 17, based on the fact that the production of two thousand 500 tons per month was a fact, and the stock is put at 2.4 cents; even on October 3, they announced that they were on time to produce 100 tons per day.

However, on October 10, they requested an extension until October 22 of their plan to sell shares, dismissed their contractor and failed to inform the public that their goal of a test month with Grupo México was delayed, and even more so. , they did not comply with this contract, which in its Validity Clause, in its only appendix, indicates the production obligation of two thousand 500 tons during the first month.


The Chihuahuan company Retec Guaru was associated during April 2015 with Arena Exploration PTY LTD, which subsequently sold its contract to Consolidated Zinc LTD for the development of the PLOMO ZINC mining project in Plomosas, located in the municipality of Aldama, Chihuahua.

In October 2018, Consolidated Zinc LTD, listed on the Australian Stock Exchange, announced the acquisition of 90 percent of the voting shares of the Minera Latin American Zinc S.A.P.I of CVI (MLAZ).

Through this subsidiary and together with Retec Guaru, they agreed to carry out the high quality Plomosas Zinc Leal Silver lead, zinc and silver project with a 49% and 51% share, respectively.

The parties agreed on the possibility that the Australian mining company would keep 90 percent of the project and the Chihuahuan firm with the remaining 10%.


As part of the deal to reach 90 percent of the project, MLAZ would have to pay an amount in shares equivalent to an amount in Australian dollars with a value of an average month prior to when the option was made.

The company announced that the project contemplated the production of more than 3,400 tons per month of mining that would be sold to Industrial Minera México, with a test month of 2,500 tons.

However, last October, it only reported 237 tons two days after the end of its stock placement and to fix its monthly average value for the purchase of the project, a figure well below the projected, but which never made the knowledge of the Australian Stock Exchange and the holders.

During the time it used to sell shares and average the share value for the purchase of the project, those shares fell more than 30% immediately after said announcement


By then, the value of the share was 2.4 cents and it had a contract to sell ore with Grupo México in its subsidiary Industrial Minera México for 12 months, with a test month of two thousand 500 tons.

The purchase agreement was carried out on September 4, 2018 and it was announced on September 5 in the Stock Exchange, with a clause that they would start with a month of test production of 1,500 tons of metal to reach the end of the year to more than three thousand 400.

Nothing was ever mentioned about the project until October 10, when an increase in the sale of shares was requested.

However, the Australian issuing company never reported that the same October 10 had dismissed the contractor Nahúm Ramos, who was going to offer the services of production and mobilization of the mineral, according to trade signed by the legal representative of MLAZ, Steven Boda.

As a public company, Consolited Zinc LTD was obliged to announce this situation and explain the reasons why its mineral supplier was ceased, either because it was not used for the purposes of the project, because it deceived him or for any other purpose.