David Catsoulis’s fundraising for a multi-billion dollar gold mine scrutinised

An abandoned silver mine in a rundown Queensland town that a twice-bankrupt entrepreneur claims holds a $15 trillion “resource” has raised eyebrows inside ASIC.

Twice-bankrupt mining entrepreneur David Catsoulis’ fundraising efforts are being scrutinised by the corporate regulator, as his team’s focus appears to swing away from the their multibillion-dollar Papua New Guinean gold opportunity to a supposed multi-trillion dollar prospect in Queensland.

Documents lodged with the regulator, ASIC, recently, show Mr Catsoulis’s PNG-focused company, Impact Gold, had just $121,929 on hand at the end of 2022, a large net asset deficiency, and a recently appointed director has resigned saying he has not been paid.

Gold Coaster Mr Catsoulis has, since at least 2019, been promoting a major gold project in the remote Maprik region of PNG, which was to underpin a planned $20.7bn listing on the London Stock Exchange this year, with Mr Catsoulis also claiming in the past the company’s in-ground resources were valued at around $100bn.

Impact Gold has in the past promised extraordinary dividend returns to shareholders, based off of the “phone book numbers of gold/valuations in our portfolio’’, identified with “Resonance Frequency Geo Technology”, which Mr Catsoulis says the company has proprietary access to in Australia and PNG.

Gold project promoter David Catsoulis.

Solid evidence of the existence of that technology or how it works does not appear to exist on the publicly-available internet.

Now, another of Mr Catsoulis’ companies, Warwick Gold, in a document sighted by News Corp Australia, appears to be claiming an in-ground resource potential worth up to $US14.9 trillion, related to a former silver mine at Texas in western Queensland, which is on care and maintenance.

Warwick signed a deal to acquire the Twin Hills and Silver Spur project for $3.5m last year, and in a November newsletter said it would “deliver major dividends from Q1, 2023’’.

An inquiry to the Queensland Department of Resources has revealed that the application to transfer the resources tenure at the site was only lodged in May this year, and is still being assessed.

In March of this year, Mr Catsoulis, when asked about the validity of his claims around the PNG gold project by News Corp Australia, said Impact Gold would soon welcome three new directors to bolster its board, including a former Labor senator and two directors with a long history working with listed entities.

Documents lodged with the corporate regulator ASIC, indicate only one of these directors, David Williams – a former director of Thomson Resources – was appointed, however did not last long, resigning from both Warwick Gold and Impact Gold on May 3.

“Please also remove me from the Warwick Gold Holdings bank accounts,’’ the document lodged by Mr Williams with ASIC says.

“I enclose my final invoice for work provided to date.

“I note my previously provided invoice remains unpaid.’’

Mr Williams declined to comment when contacted by News Corp Australia.

Gold samples from Impact Gold’s Papua New Guinea project.

The latest financial documents lodged by Impact Gold, current as at the end of December 2022, do not paint a rosy picture.

The company said it had $121,929 in cash and $193,174 in receivables, however against those it had current liabilities – those which fall due within 12 months – of $4.36m.

While its net assets are positive once all of the company's assets are taken into account, this includes $1.75m for “the right to use RFGT technology” and $2.4m worth of “mining licences/agreements with locals’’.

The financial report also says the company has a $1.14m liability of “funds received as share application moneys, subject to dispute’’.

The company’s auditor also flagged that Impact Gold says in its financial report that it had 22.3kg worth of gold, which remained in PNG

“The gold has been encased and will be used to purchase local capital equipment to assist in the larger start-up planned for the company in the Screw River,’’ the financial report says.

“The gold is stored securely, insured and valued at $1,663,593.75.’’

The auditor has included a “going concern” statement in the report, indicating “a material uncertainty may exist’’ as to the ability of the company to continue as a going concern, and also says they could not independently confirm the details of the gold in PNG.

“The note provides some detail, but not, in my opinion, sufficient to explain the significance to users of these reports,’’ the auditor says.

“Management has not provided independent audit evidence to confirm the details in Note 16, including the time at which it first materialised, where it is located, and whether it is insured for full value.

“If such asset existed at the report date, the current asset, the net assets, and the revenue for the year would have increased by the value of that asset.’’

The auditor says the company would also have accrued a liability with regard to tribute agreements to landholders.

With regard to the liability relating to the dispute over share application moneys.

“Management has provided written assurance but not audit evidence as to the status of the disputes or likely financial consequences of the resolution of those disputes.’’

ASIC refused to confirm or deny whether it was looking into Mr Catsoulis’s fundraising efforts, however News Corp Australia has spoken to sources who have been contacted by ASIC, and has a copy of a document which has been sent to several authorities complaining of the business conduct of Mr Catsoulis and his associates.

Mr Catsoulis two months ago posted a series of videos to YouTube, claiming that the assets on site at the Texas project have a replacement value of $100m.

“The infrastructure here is enormous, on the Texas mine site, we refer to as Twin Hills,’’ he says.

“Could not replace this for $100m.’’

Sources familiar with the site say the project has issues with water management and contamination.

Mr Catsoulis was sent detailed questions about Impact Gold’s financials and the ASIC inquiries but did not respond before press time.