(Alliance News) - Alba Mineral Resources PLC on Wednesday said it has conducted a business review and will continue to focus on its Clogau gold project in Wales going forward.
Shares in Alba were up 3.7% at 0.18 pence during afternoon trade in London.
Executive Chair George Frangeskides said: "After the excellent results we have announced at Clogau over the past 12 months, which have reinforced that project's enormous potential, it should come as no surprise that one outcome of Alba's recent review is that Clogau should continue to be a focus of the business moving forward.
"Our overriding objective will be to continue to deploy the company's funds towards the fast-tracking of those of our assets that can most quickly move into the development and production phases, as that is where Alba will be able to make significant returns for shareholders, with cash-flow generated either from production or, if the right opportunity arises, by selling an asset for a multiple of our total exploration spend."
The Alba board reviewed the company's mining assets, as well as its investments in oil and gas, focusing on "determining those assets with the greatest potential to achieve material returns for Alba within the shortest timeframe".
The assets identified from this were Clogau, the Amitsoq graphite project in Greenland, and the Thule Black Sands ilmenite project - also in Greenland.
For the rest of 2019, Alba's field work will focus on Clogau while its technical studies will aim to refine products and markets at Amitsoq and Thule.
Alba said it is "open to external investment" in its Greenland assets, with the goal of "substantially derisking one or more of those projects".
The company will not, however, be in the field in Greenland in the current field season, though it will reassess conditions for field work next year.
Back in June, Alba opted not to contribute to a cash call by the Horse Hill project operator for GBP261,000. Alba has an 18.1% stake in the Horse Hill project, located in southern England.
"Regardless of whether Alba resolves to continue to decline to fund future cash calls relating to that project...Alba's investment in Horse Hill remains a near-term cash-generative opportunity for the company. As such, Alba is open to either retaining its stake in the project through to production, when material oil sales revenues should be generated, or to giving serious consideration to any third-party offer received prior to production which properly reflects the inherent value of Alba's stake," the company said.
Alba Mineral Resources (ALBA)