Pearl Gold AG / Key word(s): Miscellaneous 17.09.2014 14:10 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- * Wassoul'Or has filed for a transitional protection procedure (Chapter 11) * No activity on Wassoul'Or's mines despite contrary announcement * Pearl Gold AG has lost confidence in Wassoul'Or's management and will take legal action Frankfurt, 17 September 2014. Pearl Gold (ISIN: DEOOOAOAFGF3). Pearl Gold AG has been informed that Wassoul'Or has finally decided to file for a special procedure pursuant to OHADA laws, comparable to a Chapter 11 procedure in the United States (règlement préventif). To avoid the risk of a liquidation initiated by a third creditor, Pearl Gold and Wassoul'Or initially agreed to a joint filing, but Wassoul'Or again disregarded its engagements and did not invite Pearl Gold to join the process. Pearl Gold sees itself obliged to take legal action in the near future to defend its interests, as several agreements between Pearl Gold and Wassoul'Or have not been respected by the latter. Pearl Gold's management places trust in the competent court in Mali and its appointed expert to analyse the situation of Wassoul'Or and to propose a suitable solution. Pearl Gold regrets that the recovery plan presented by Wassoul'Or to the court does not answer any of the relevant questions while raising new ones: Wassoul'Or is for example seeking to appoint a former contractor from Canada as operator of the mine. This engineering company being the same contractor that Wassoul'Or has held responsible for all technical problems at the plant in the past leaves Pearl Gold to question the soundness and seriousness of Wassoul'Or's proposals. In light of Wassoul'Or's recent strategic and operational decisions Pearl Gold wants to point out that it has lost confidence in the willingness and competence of Wassoul'Or's management to lead the operations on the Koderian mine in the best interest of all shareholders. Despite regular assurances from Wassoul'Or since July 17th, 2014, work on the mines has not resumed yet. Neither Pearl Gold's staff that has been inspecting the site on several occasions nor other witnesses in the Kodiéran region contacted by Pearl Gold have seen any activity on ground. Pearl Gold AG Pearl Gold AG is a project developer and active investor listed in the General Standard of the Frankfurt Stock Exchange, based in Frankfurt. The company focuses on investments in West African exploration and mining corporations, especially in the field of gold and other precious metals. The first investment of Pearl Gold is the Malian mining company Wassoul'Or, in which Pearl Gold has a stake of 25 per cent. Wassoul'Or concentrates on the exploration and production of gold and runs the Kodiéran gold mine in the South of Mali. For further information as well as the securities prospectus visit http://www.pearlgoldag.com For Inquiries: MSL Financial Press@pearlgoldag.com Tel: +49 (0) 30 82082 506 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information included in this news release constitutes "forward-looking statements". The words "expect", "plan", "will", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Pearl Gold AG cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to, risks associated with the mining industry such as government regulation, environmental and reclamation risks, title disputes or claims, success of mining activities, future commodity prices, costs of production, possible variation in mineral reserves, mineral resources, grade or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, the timing of estimated future production, capital expenditures, financial market fluctuations, requirements for additional capital, conclusions of economic evaluations, limitations on insurance coverage, risks associated with using third-party contractors and inflation. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. 17.09.2014 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Pearl Gold AG Neue Mainzer StraÃe 28 60311 Frankfurt Germany Phone: +49 (0) 69 971097 555 Fax: +49 (0) 69 971097 202 E-mail: info@pearlgoldag.com Internet: www.pearlgoldag.com ISIN: DE000A0AFGF3 WKN: A0AFGF Listed: Regulierter Markt in Frankfurt (General Standard) End of Announcement DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Pearl Gold AG: Update on Situation at Wassoul'Or SA
| Source: EQS Group AG