Besra Gold (ASX:BEZ) is facing legal proceedings in the Superior Court of Justice in Ontario.
The company received and reviewed a statement of claim, outlining allegations that it describes as "inaccurate and without basis."
The claim, brought by Prana GP, Talisman 37, and Concept Capital Management, includes charges of oppressive behaviour and breaches of fiduciary duty concerning Besra’s dealings with Quantum Metal Recovery.
The plaintiffs are seeking multiple orders, including the removal of current directors and CAD$5 million ($5.4 million) in damages.
"Besra is in the process of seeking legal advice with respect to the merits of the claim. We will explore any potential counterclaims or other legal remedies available to the company," said Michael Higginson, director and company secretary of Besra Gold.
Additionally, the plaintiffs demand an investigation into Besra under the Canadian Business Corporations Act.
Besra has committed to keeping its security holders informed of any material updates concerning these legal proceedings.
Besra Gold is an Australia-based gold mining company focused on the exploration and development of the Bau Goldfield in East Malaysia. Besra controls, directly and indirectly, a 97.8% interest in the Bau Gold Project located in Sarawak, East Malaysia.
At the time of reporting, Besra Gold's share price was $0.079.