LONDON (Alliance News) - Metals Exploration PLC on Monday said it expects the partial suspension order over the company's production from the Runruro project in the Philippines to be lifted soon, allowing the company to move the project into commercial operations.
The project faced delays in reaching the commercial production stage back in January when Typhoon Lando damaged the site, leading the Philippine government's Mines & Geosciences Bureau to issue a partial suspension order against the project.
On Monday, Metals Exploration said it is continuing to work with the Mines & Geosciences Bureau and is observing the verification process, which should facilitate the partial suspension order being lifted.
"The completed rehabilitation and enhancement works are being verified by the Mines & Geosciences Bureau who is satisfying itself that the work is complete, the standard of works is compliant and that the third party geotechnical and design reports are satisfactory," said the miner.
"Once the Mines & Geosciences Bureau is satisfied and the partial suspension order lifted the Runruno project will complete ore commissioning and move into commercial operations shortly thereafter," it added.
The delay suffered in January meant Metals Exploration had to reschedule its capital repayments to its lenders as the damage to the site meant it had insufficient cash flow to meet the December 2015 payment. That payment was pushed back to March, with larger payments expected to begin in June.
Metals Exploration did not provide an update on Monday as to whether it can make the capital repayment due this month.
Metals Exploration shares were down 3.0% to 4.00 pence per share on Monday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Metals Exploration (MTL)