LONDON (Alliance News) - Sovereign Mines of Africa PLC Monday said it has enough cash to retain its licenses in Guinea as its continues to look for a partner in a West Africa region still stricken by the Ebola outbreak.
Sovereign reported a pretax loss of GBP84,739 for the six months ended June 30, narrower than the GBP697,158 loss made in the first half of 2013, reflecting a realised loss on financial assets of GBP2,086, compared to an unrealised loss of GBP552,200 for the corresponding period in 2013.
The company also cut administrative expenses to GBP83,597 in the first-half of 2014, compared to GBP146,816 in the first six months of 2013. It currently earns no revenue and reported GBP375,000 in cash balances as of Monday.
"In order to help develop our (Mandiana-Magana) project (Guinea) we are continuing to search for a strategic partner or a complementary acquisition. However, with cash resources as at today's date of approximately GBP375,000, we consider that the company will have sufficient funds to retain its licences for the foreseeable future, on the basis that market conditions will hopefully improve," said Chairman David Pearl.
Several more advanced gold projects in the region have been able to raise substantial funds in recent months, indicating a potential return of investor appetite for gold projects, the company said.
"Unfortunately, in common with other mining exploration companies operating in Guinea, our exploration activities have been curtailed by the recent Ebola epidemic, and at present we are uncertain as to when these can resume," added Pearl.
Sovereign Mines has three prospective gold projects based in Guinea, covering a total of around 1,363 square kilometres.
Sovereign's shares were untraded Monday, last quoted at 0.600 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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