LONDON (Alliance News) - EMED Mining Public Ltd Monday said it is "confident" that its current cash will last until the end of the first quarter, or possibly beyond, and said it expects to finalise financing negotiations without incurring any delays on the Rio Tinto copper project in Spain.
EMED said it has a current cash position of EUR10 million, plus a further EUR6 million available under its loan facility.
"The company is confident that its current cash position of EUR10 million is sufficient to last through the first quarter of 2015 and potentially beyond with the company maintaining the flexibility to reduce planned expenditures if required," said the company.
"The company presently expects that this is sufficient to complete negotiations of the global financing package without project delays," EMED added.
In December, EMED said it had conditionally agreed an unsecured bridging finance facility for up to USD30 million with Trafigura Beheer BV, Orion Mine Finance, and Hong Kong Xiangguang International Holdings Ltd, an affiliate of Yanggu Xiangguang Copper Co Ltd.
The finance facility was designed to provide EMED with enough working capital to continue with its development of the Rio Tinto copper project to the end of February 2015 whilst it finalises its negotiations with key stakeholders in relation to funding the phase one development plans for Rio Tinto.
The project's name comes from being formerly owned by FTSE 100 miner Rio Tinto PLC.
"We remain in advanced discussions with our funding partners and are confident of securing the financing for the re-start of production without delays to the company's anticipated timetable," said Chief Executive Alberto Lavandeira.
"The latest capital forecast to complete phase-one development indicates the potential for up to USD50 million savings previously reported by the company are likely to be achieved," EMED said Monday.
EMED said that under the phase one development, engineering and procurement for the project has been completed, whilst rehabilitation of the primary crushing, screening area, milling and for the flotation area will be completed in the second quarter. EMED also said the site has been connected to the power grid and power is now available, alongside the fresh and process water supply being "largely" completed.
"We are very pleased by the rapid progress being made in the development of onsite operations and at costs that are trending well below original estimates," Lavandeira added.
In January, EMED said it had received final permitting approval from the government of Andalucía for the Rio Tinto project.
In addition, EMED said Chief Financial Officer John Leach returned to work in January after taking a leave of absence for health reasons.
EMED Mining shares were up 15% to 4.03 pence per share Monday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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