Montauk Metals Announces Assignment into Bankruptcy

Core Viewpoint - Montauk Metals Inc. has filed for bankruptcy under the Bankruptcy and Insolvency Act (Canada) after failing to reach a settlement with creditors [1][5] Company Situation - The Fuller Landau Group Inc. has been appointed as the Licensed Insolvency Trustee to manage the bankruptcy proceedings [2] - All three directors and officers of Montauk resigned immediately before the bankruptcy filing [2] - The Trustee will oversee the distribution of any realizable assets to proven creditors, with no surplus expected for shareholders [3] Financial Issues - Trading of Montauk's shares has been suspended by the TSX Venture Exchange due to failure to file audited annual financial statements by the deadline [4] - The company has suffered significant financial losses, including over USD $16 million in sunk costs and the total loss of a gold property in Colombia, which was expropriated without compensation [5] - Montauk had previously delineated significant gold resources, including 224,900 ounces measured and indicated at 10.5 g/t and 377,000 ounces inferred at 10.3 g/t [5] Legal Proceedings - Montauk attempted to seek restitution through international court but lost a 2-1 judgment [5] - The company was unable to secure support from its largest creditor to advance a formal proposal under the BIA, leading to the bankruptcy filing [5]