Former Core Gold Inc. CEO Keith Piggott on May 20 recommended that the company's shareholders to vote against the proposed merger with Titan Minerals Ltd. after he revealed "disturbing" details about the latter's Tulin gold processing plant in Peru.
Piggott, a 7% shareholder in Core, uncovered through notarial sworn statements of witnesses that Titan tried to conceal environmental damage at Tulin by secretly burying cyanide tailings outside the plant area during the night.
According to his findings, the cyanide-bearing tailings were moved outside the plant over about two weeks, supposedly to open up room for further tailings in the area.
Core rejected a previous disclosure made by Piggott, who claimed the explorer's board removed him in retaliation for his opposition to the proposed merger.
Piggott said an "overwhelming" number of shareholders told him they will vote against the Titan/Core deal since the Tulin plant could potentially cost the combined entity millions of dollars in liabilities and the loss of its license to operate.
Additionally, he said Tulin has had a record of incurring fines for environmental, safety and occupational health violations over several years, and this new revelation will jeopardize its credibility with South American governments.
Titan was also accused of failing to make appropriate disclosures in its annual reports.
In March, Core took up a 5.7% stake in Titan as part of an amended agreement for the planned merger.