LONDON (Alliance News) - Sovereign Mines of Africa PLC on Monday said it expects to undertake a fundraising in the "immediate future", provided it secures a partnership on its Mandiana project in Guinea, as it reported a narrowed pretax loss for its first half.
For the half year to end-June the company posted a pretax loss of GBP46,849, narrowed from a pretax loss of GBP84,739 a year before, as a result of lower administrative expenses. It did not report revenue in either period.
The company entered into an exclusivity agreement with a third party in July over potential partnering to develop the Mandiana project, and said it cannot provide further details until the end of the exclusivity period, which runs to early October.
It has received a firm commitment from a director to underwrite a fundraising, which it expects to take place once the position regarding the potential partnership has come to fruition. However it warned that without the partnership being concluded, and refinancing in the immediate term, it will not be able to finance the expenditure necessary to retain its exploration assets and continue in operation.
Shares in the company were untraded Monday morning. It last closed at 0.180 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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