Algold Resources Ltd. (TSX: ALG)

Algold Resources Ltd. (TSX: ALG), a Montreal, Quebec-based junior mining company that focuses on the exploration and development of gold deposits in West Africa, filed an NOI on January 15, listing approximately $5.6 million in liabilities, including $5.4 million to Ace Mortgage Corp. The pre-COVID-19 pandemic macro-economic background of gold, including increasing interest rates, stronger USD, and the downward trended price of gold, has led to a challenging financing environment for junior gold exploration projects. In addition, the jurisdiction in which the company operates, Mauritania, has been the object of certain negative perceptions in the industry and among investors that have made it more difficult to attract financing and support. Confronted with various liquidity issues and difficulties in raising debt or equity financing, the company ceased its operations on November 19. In June 2020, IIROC issued a cease trade order against the company. Aya Gold & Silver Inc. (TSE: AYA) ("AGS"), a Canadian mineral exploration and development company, has notified the company of its interest in providing interim financing during the court-supervised restructuring proceedings. Raymond Chabot is the proposal trustee. Counsel is Lapointe Rosenstein Marchand Melançon for the company and Dentons for AGS.