LONDON (Alliance News) - Frontier Resources International PLC on Thursday said there is no certainty it will proceed with the renewal of its licence over Block 34 in the Kafue Trough in southwestern Zambia, despite winning conditional approval to do so, as it still has an "urgent need" to arrange additional funding.
That funding is meant for its immediate working capital requirements "over and above" the potential commitments under its licences, the company said.
Frontier said it has been informed by the Zambian Ministry of Mines, Energy and Water Development that the Block 34 exploration licence has been renewed for a further three years, with the condition that it conducts an environmental project brief on or before March 14 and pays any outstanding statutory fees due with immediate effect.
"The company is considering the renewal letter and will seek further clarification from the Ministry on the requirements of an environmental project brief and any fees payable prior to submission of the licence certificate to the Ministry for renewal endorsement," Frontier said.
"The board is continuing to consider all the options for the potential ongoing funding of the company which could include an issue of new equity, the disposal of part or all of the group's existing licence interests and possibly the investment in new projects outside of the oil sector," Frontier added.
Shares in Frontier were untraded on Thursday morning, having last traded at 0.105 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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