October 3, 2022
AuVert Mining Group Inc., a Calgary, Alberta-based technology company which has developed a patented process to extract natural resources without the use of mercury or other toxic chemicals, was placed in receivership on October 3, on application by Polaris Financial Management Limited, the company's senior secured creditor. Between December 2018 and June 2019, Polaris loaned funds to AuVert for use in an alluvial mining operation located in Colombia. Alluvial mining is the mining of stream beds for mineral deposits. In addition, Polaris took assignments of loans made by Fernhope Limited U.K., an initial investor in AuVert. By June 2020, the company had defaulted on the Polaris loans and Polaris issued a demand on the loans. Instead of paying Polaris, on July 10, 2020, AuVert purported to transfer all of its material assets to a company owned by AuVert’s majority shareholder. Polaris and AuVert’s minority shareholder commenced an oppression action on November 13, 2020 to reverse the sale. The proceeding has not concluded. Polaris is owed in excess of $4 million. BDO was appointed receiver. Counsel is McMillan for Polaris.
By Dina Milivojevic