Financial and accounting update


For immediate release

May 11, 2021

Serabi Gold plc

(“Serabi” or the “Company”)

Financial and accounting update

Serabi issued a press release on April 1, 2021 informing that, during audit work in Brazil, the Company learned that certain cash withdrawals made in 2020, and amounting to approximately USD 80,000, lacked supporting documents. Following further investigations carried out by the Company and its legal advisers in Brazil, the Company informs that it has initiated proceedings to terminate the employment contracts of two of its senior executives based in Brazil.

During the Company’s ongoing investigations, other unwarranted cash withdrawals have been identified since 2015 amounting to approximately USD 120,000 (at current exchange rates), bringing the total level of withdrawals to ‘unjustified cash at around 200,000 USD. The Company has also identified a number of other potential irregularities related to expense claims and other minor items that may require further investigation. The Company has retained the services of local forensic accountants to assist its UK auditors so that the auditors can, as quickly as possible, complete their audit procedures, enabling the Company to publish its financial statements for calendar year 2020. The Company remains confident that based on the results of the investigations to date, the financial statements will be released by June 30, 2021.

The Company considers that the termination of the managers’ employment contract may lead to legal proceedings in Brazil involving the subsidiary of the Company Serabi Mineracão SA. At present, therefore, with the exception of any regulatory disclosure requirements, additional details regarding ongoing investigations into these matters may be limited so as not to prejudice future legal proceedings.

The information contained in this announcement is considered by the Company to constitute inside information, as set out in Market Abuse Regulation (EU) No 596/2014, as it forms part of UK domestic law under the law. of 2018 on the European Union (withdrawal).

The person who arranged for the publication of this announcement on behalf of the Company was Clive Line, Director.


Serabi Gold plc
Michael hodgsonPhone: +44 (0) 20 7246 6830
General managerMobile: +44 (0) 7799 473621
Clive LinePhone: +44 (0) 20 7246 6830
Finance directorMobile: +44 (0) 7710 151692
Beaumont Cornish Limited

Appointed advisor

Roland CornwallPhone: +44 (0) 20 7628 3396
Michael cornichePhone: +44 (0) 20 7628 3396
Peel Hunt LLP

British broker

Ross allisterPhone: +44 (0) 20 7418 9000

Investors and public relations

Gordon poolePhone: + 44 (0) 20 3757 4980
Nick Hennis
Emilie Room

Copies of this announcement are available on the Company’s website at

Neither the Toronto Stock Exchange nor any other securities regulator has approved or disapproved of the contents of this announcement.


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