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Montego sues Cegielski, Grieg for breach of duty

2020-01-22 20:16 ET - News Release

Mr. David Greenway reports

MONTEGO ANNOUNCES CORPORATE UPDATE

Montego Resources Inc. has entered into two separate loan agreements with arm's-length third parties for $180,000 each, resulting in an aggregate amount of $360,000. Both loans will bear interest at 12 per cent per annum. The principal amount and any accrued interest are due on the demand of the lenders. In addition, the company has arranged for a private placement for up to two million common shares at five cents per common share for gross proceeds of $100,000. The company plans to use the proceeds from the private placement for working capital purposes.

Further to the news release dated July 29, 2019, the company has proceeded with legal action against Adam Cegielski and Jim Grieg for breaches of fiduciary duty, and failure to exercise reasonable care, skill and diligence that jeopardized the company's interest in the Black Dog gold project in Northern Quebec and its interest in the Taylor silver project in Nevada, which has affected shareholder value in the company.

The company is currently in advanced settlement discussions with Mr. Cegielski. Mr. Grieg has not filed a response to the civil claim. The company has applied for default judgment against Mr. Grieg.

The company received notice from Silver Predator Corp. that Silver Predator has terminated its option agreement with the company. Under the agreement, the company held the right to acquire from Silver Predator a series of certain mining claims located in White Pine county, Nevada, commonly referred to as the Taylor silver property.

The company has brought all regulatory filings and financial statements up to date, and has appointed Dave Jenkins to the board of directors and David Greenway as interim chief executive officer following the resignation of Anthony Jackson as chief executive officer and director. The board of directors now consist of Yuying Liang, Mr. Greenway and Mr. Jenkins.

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