LONDON (Alliance News) - Nyota Minerals PLC Thursday was temporarily suspended from trading on AIM at its own request, pending an announcement on funding talks it is currently in.
The gold exploration and development company said it has been in discussions with more than one party regarding funding, including a possible reverse takeover of the company, but said it had requested a suspension on AIM because there is no guarantee a deal would be completed.
The company said that the shares will remain suspended until a deal can be clarified or an admission document has been published for a reverse takeover.
On Monday, Nyota said that due to ongoing talks with various parties regarding funding arrangements, it could not make its 2013 audited financial statements public before an Australian listing deadline and its shares on the Australian Stock Exchange were therefore suspended automatically on October 1.
The company had said on Monday that its AIM shares would continue trading, as AIM rules allow longer periods for the preparation and publication of financial statements, but it has now asked for a temporary suspension in the UK.
Nyota Minerals has been attempting to find funding partners to continue development of its Tulu Kapi gold mine in Western Ethiopia and said talks are at an advanced stage.
The company had said it would run out of cash by the end of September, but in a recent statement said cost cutting and careful management of its spending means it has enough to get it through to the end of October at least. Its cost-cutting has included reducing fees paid to its directors by half.
Nyota said on Monday that due to the failure to develop Tula Kapi at this point, the company expects the 2013 financial report to include a non-cash impairment charge of AUD45-55 million and it has now put the site on care and maintenance until a definitive plan is agreed.
Nyota minerals shares rallied this morning up 48.1% to 1.55 pence before the announcement.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
