Gratomic Inc. (TSX-V:GRAT, OTCQX:CBULF) said it is pursuing legal action in Brazil and Canada to reclaim its Capim Grosso property in Brazil, alleging that its former Chief Operating Officer, Armando Farhate, wrongfully transferred key claims to Bahia Graphite Corporation, where he now serves as CEO.
The company said it let certain claims within the Capim Grosso property expire to prioritize its Aukam property in Namibia, citing high exploration costs in Brazil. However, Gratomic alleges Farhate improperly transferred the remaining claims, where significant investments had been made, to Bahia Graphite’s subsidiary, Bahia Brazil, without authorization.
Gratomic claims Farhate retained control of its Brazilian subsidiary, Zumbi Mineração, after resigning and wound up the subsidiary without accounting for $1.9 million advanced for exploration activities. The company intends to annul the transfer, recover the property, and seek damages from Farhate and other involved parties.
Gratomic has engaged legal counsel and is confident the courts will recognize the alleged wrongdoing. It plans to sell the property after recovery to offset its investments while focusing on its Namibian operations.