Jaguar Mining (TSX: JAG) has found itself in a tough situation in Brazil following a landslide that occurred on a tailings pile associated with its Turmalina Mine. The landslide, which occurred last weekend, damaged a number of residences in a nearby town in addition to hitting an on-site gas station and several pieces of infrastructure related to the mine.
Given the damage associated with the landslide, the Public Prosecutors Office of Minas Gerais, MPMG, this week filed a lawsuit against Jaguar. Within, MPMG is looking to freeze $200 million Brazilian Reals (C$47.28 million) within Jaguar’s bank account in an effort to secure funding for repairs and reparations.
READ: Jaguar Mining Halts Operations At Turmalina Mine After Tailings Failure
If Jaguar does not have sufficient funds to freeze, then the Prosecutors Office is looking to have vehicles, real estate, or other assets apprehended as a means of securing funding.
The lawsuit also demands the immediate payment of $10,000 reals for each family unit that was removed from their property, along with monthly amounts while they are relocated from their homes.
WATCH: Jaguar Mining Turmalina Mine Collapse
As part of the lawsuit, the Office has also demanded the immediate cessation of activity at the mine until the stability and safety of the structures on site has been reviewed by an independent technical auditor.
Reports also suggest a criminal investigation is ongoing related to the matter, which was also launched by the Public Prosecutors Office of Minas Gerais.
As of September 30, 2024, Jaguar Mining had $41.60 million in cash on hand.
Jaguar Mining last traded at $2.63 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
