Sovereign Mines of Africa Share News (SMA)

Shares subsided further at AIM-listed Sovereign Mines as it revealed increased losses in 2013, despite claims of real progress and sufficient capital for at least 15 months.Chairman David Pearl bemoaned the fact the company had been forced into "survival mode" even though it had been given assurance from the Guinean government that it would provide "every assistance in fast tracking a small scale mining operation" based on Sovereign's existing resource."As a result, a year which had shown such promise, ended in very difficult and frustrating circumstances and despite." As losses rose from £0.58m to £0.92m, Pearl stressed that Sovereign's had very low cash burn in comparison to AIM peers and it had therefore been able to restructure its finances so as to preserve its assets in Guinea in a cost-effective manner. After raising £0.63m in March, the company has over £0.6m in the bank, "which will provide sufficient working capital for at least 15 months", he said.Operational highlights in the year included the delineation of a high-grade resource of 420,000 ounces inferred at 2.3 grammes per tonne g/t at the southern end of its flagship Mandiana-Magana project, and hence was granted a large adjoining exploration concession.Sovereign hopes to take advantage of market conditions to make a complementary acquisition and is seeking potential strategic partners.Its shares were down 11.3% to 0.98p at 14:45 on Thursday. OH