LONDON (Alliance News) - Sovereign Mines Of Africa PLC on Monday said the exclusivity period on its talks about securing a partner on the Mandiana project in Guinea has now lapsed.
Sovereign has extended the exclusivity agreement on October 23 earlier this month as it continued talks with a potential unnamed partner about Mandiana.
Back in September, Sovereign said it expected to undertake a fundraising in the "immediate future" but said it would only do so if the partnership is sealed. The miner has received a firm commitment from a director to underwrite a fundraising.
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.
It said on Monday that though the exclusivity period has lapsed, it remains in talks about reaching a formal agreement on the project.
Shares in the company were up 4.5% to 0.888 pence on Monday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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