“The Western Economic Court of Appeal confirmed the dishonest investment intentions of Gofer Mining, the company that attacked US investor Avellana Gold. Gofer Mining is financially insolvent, and its owners must be made accountable to the law,” Avellana Gold's press service said.

The Western Economic Court of Appeal found it illegal and overturned the decision to rehabilitate the bankrupt Zakarpatpolymetaly mining enterprise. The bailout was initiated by Gofer Mining, which publicly called itself an investor. The Court confirmed Gofer Mining's inability to restore Zakarpatpolymetaly enterprise and extract precious metals at the Muzhievo deposit in Transcarpathia.

The bailout procedure is economically unreasonable and is only capable of delaying court cases. Moreover, according to the law, the decision on a bailout must be taken by the creditor’s committee before the enterprise is declared bankrupt. Zakarpatpolymetaly LLC, however, has been in bankruptcy for over 11 years, [liquidation procedure started] and does not have any tangible assets to resume production.

Incredibly, in May of last year, the creditor’s committee of Zakarpatpolymetaly LLC chaired by Dmitry Zaitsev decided to start the bailout procedure and attract an allegedly new foreign investor - Gofer Mining. The director of Gofer Mining is Oleksandr Mashtepa, a known associate of Zaitsev, who was previously called a raider of the “Ukraine” shopping mall. Interestingly, according to the UK Companies House, Gofer Mining is linked to Cengart Financial Inc, which brought Zakarpatpolymetaly to bankruptcy in the first place by creating fictitious debts. Dmitry Zaitsev is in the database of “Myrotvorets” website, where he is accused of raiding, separatism and money laundering.

Gofer Mining PLC, which is supposedly a creditor of Zakarpatpolymetaly LLC, was only registered on April 12, 2019 at about the same time as several related companies - Gofer Energy PLC and Gofer Wealth PLC.

The special permit for the subsoil use, which was owned by Zakarpatpolymetaly LLC, was revoked in 2008 and the company was declared bankrupt. Since then, no action was ever taken to restore the operations of the company. A new special permit for the subsoil use of the Muzhievo deposit was issued to Karpatska Rudna Company LLC in 2012. In 2016, the company was acquired by Avellana Gold, who, in 2019, built a new modern processing plant to clean up the environmental damage left by the previous enterprises’ operations.