Infinito Gold, Ltd., said today that it is going out of business because it cannot get any more financing. This is the firm that is involved in an international arbitration case with Costa Rica. The company, based in Calgary, Canada, issued an announcement that said all directors and officers had resigned.
Infinito, through a Costa Rican subsidiary, planned to operate the Las Crucitas open pit gold mine in northern Costa Rica. The plan was opposed strongly by environmentalists and some government officials even though the company had been granted all necessary permissions..
Last month Infinito announced that it had accepted an offer of a loan for up to $500,000 from Exploram Enterprises, Ltd., its major shareholder, and that $115,000 has beenadvanced to the company under the loan to date.
The money was to bankroll Infinito’s legal battle against Costa Rica.
However, today the firm said that the company’s major shareholder and creditor has advised the company that it is unwilling to advance any further funds. A key figure in the company has been is Ronald Mannix, operator of Exploram and a wealthy Canadian.
The company said today that it owes $90.1 million. The announcement came over the PR Newswire.
The decision by the company leaves the status of the arbitration case in doubt. The case is in the World Bank’s International Centre for Settlement of Investment Disputes, and an arbitration panel already has been formed.