Registered Mortgage

Why is there a mortgage registered over the Welcome Again Mine?

 

Great Eastern Gold's closest-to-production resource, the Welcome Again Mine (ML10125), has a mortgage registered over it in the name of LXM Enterprises Pty Ltd (see page 6 of Resource Authority Public Report).

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LXM Enterprise Pty Ltd also holds a registered mortgage over the Mermaid Waters property that is the registered address of both director Kingsley Allen and secretary Cristiana Zovi (see Title Search). 

 

The following actions may or may not be interrelated:

•  20 July 2021 - Kingsley Allen's shareholdings in Success Gold (owner of ML10125) increased from 50% to 60% (see ASIC document 7EBJ63325, lodged and signed by Kingsley Allen as director)

• 21 July 2021 (the following day) - ownership of Mermaid Waters property transferred to Kingsley Allen (see title search).

• 16 August 2021- mortgages to LXM Enterprise Pty Ltd were registered over ML10125 and ML10124 (see Resource Authority Public Report).

• 4 August 2022 - mortgages to LXM Enterprise Pty Ltd were registered over Mermaid Waters property (see title search).

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What implications may this have?

• In the event of a default, LXM Enterprise Pty Ltd may be able to foreclose on these resources.

• These mortgages may impact on investors who have been granted these resources as security for their investment. 

• Details of these mortgages may or may not have been concealed from investors by providing them with non-current Resource Authority Public Reports.

• An investor's due diligence on Great Eastern Gold Limited may include investigating any loan agreements relating to these mortgages.

• These mortgages may or may not be affecting Great Eastern Gold's ability to raise funds to go into production.

• The circumstantial nature of these events may raise concerns about the legitimacy of the transfer of ownership of Success Gold Pty Ltd (see Ownership).

• These events may affect the company's ability to renew these resources (see Resource Expiry).

• These events may have implication on the value of Great Eastern Gold Limited (see Company Value).