(Alliance News) - East Star Resources PLC on Tuesday posted a ballooning loss in the first half of its financial year as it paid a reverse acquisition expense from its move to Kazakhstan in January.
Pretax loss in the six months to May 31 widened to GBP2.1 million from GBP74,000 a year prior.
The gold and copper exploration company focused on Kazakhstan had paid a GBP1.6 million reverse acquisition expense, compared to no such cost a year ago.
The company expects targets at its Rudny Altai volcanogenic massive sulphide licenses in East Kazakhstan to be identified by the end of 2022 and initial drilling to start in the field season of 2023.
In January, East Star raised about GBP3.4 million following the reverse acquisition of Discovery Ventures Kazakhstan Ltd, which holds four licenses in two producing mineral belts in Kazakhstan.
Back then, Chief Executive Officer Alex Walker said the conditions in the central Asian landlocked country now are similar to that of Western Australia in the 1970s, with high grade deposits the firm expects to be highly profitable.
East Star Resources shares were 0.4% lower at 4.48 pence each in London on Tuesday morning.
By Tom Budszus; tombudszus@alliancenews.com
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East Star Reso (EST)