A FORMER chief executive is demanding a company he once led be wound up as the fallout continues over the demise of its Bendigo subsidiary.
GBM Gold's former boss John Harrison has lodged the application with the federal court of Australia, months after the company's wholly-owned subsidiary Kralcopic collapsed into liquidation.
GBM Gold has so far avoided Kralcopic's fate and stayed out of administration despite the loss of a prize Kangaroo Flat mining site.
Kralcopic collapsed earlier this year after the Supreme Court denied it the right to work Bendigo sites including the "Swan Decline", an 18 kilometre long tunnel constituting the last portal down to the city's goldfields.
Attempts to contact Mr Harrison's legal team about the new court case have so far gone unanswered.
Mr Harrison was an executive director of GBM Gold until April 2019 and chief executive officer for seven years until February 2020, according to an annual report covering the 2019 period.
GBM Gold has had stakes in projects in Avoca and Dunolly that were not connected to Kralcopic.
The Advertiser is yet to establish how those projects, GBM Gold's partners or its shareholders' interests would be impacted if Mr Harrison's application is successful.
GBM Gold has long struggled to pay off debts and start projects connected with Kangaroo Flat mining operations.
Its subsidiary took over the site in 2017 and had hoped to process tailing sand at the surface for gold, as well as eventually start operations in the Swan Decline.
GBM Gold grappled with several failed share floats and the nixed sale of $6 million worth of Kangaroo Flat mining equipment 2017 and 2021.
The Australian Stock Exchange delisted the company in 2020.
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GBM Gold appears to have taken a financial hit when Kralcopic collapsed earlier this year.
Documents tabled with its subsidiary's administrators in the months that followed show it wanted to recoup almost $7 million.
The Advertiser now seen a document from liquidators advising that Kralcopic's creditors were unlikely to recoup losses because most cash and assets the company had was in the hands of the government and likely to be spent on rehabilitating mine sites.
GBM Gold is currently consulting with its lawyers about Mr Harrison's application.
Its chairman Eric Ng has previously said the company hoped to continue its involvement on central Victorian mining and exploration sites.
He also gave the Advertiser this answer when asked back in May whether the company wanted to return to the ASX: "Absolutely".
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