LONDON (Alliance News) - Premier Gold Resources PLC Friday said no material operational developments occurred during its first-half as it continues to press its case with the Kyrgyz authorities so it can continue its work programme at its Cholokkaindy license.
Premier Gold saw its shares drop 11.2% to 0.0799 on Friday morning.
The company recorded a narrowed pretax loss for the six months ended June 30 of GBP415,640, compared to a GBP807,930 in the first-half of 2013. In order to preserve the capital available to the company, the board has suspended all directors' salaries and has taken steps to minimise outgoings, it said.
Premier Gold generates no revenue and reported a cash balance of GBP26,928 at June 30. Its expenditure relates to activities and administrative expenses associated with the Cholokkaindy licence in the Kyrgyz Republic.
Its work programme at Cholokkaindy has been prevented since October 2013, due to factions of local groups seeking to hold up the work programme illegally, it said.
On February 26, Premier Gold assured that the issues were being addressed as a priority in order to ensure that employees and contractors can work safely at Cholokkaindy at the outset of the forthcoming field season, estimated to start in May.
"It is immensely disappointing to advise you that, despite our persistence in the Kyrgyz Republic, Premier Gold continues to be afflicted by this local resistance. As such, no material operational developments occurred during the period under review," said Chairman Robert Stewart.
"Premier Gold's management expects to participate in the coming months in a series of consultations with the working committee, and representatives of the local community, as it seeks to bring about a resolution. We are, however, firmly of the belief that the delays which Premier Gold has already suffered are intolerable; the company will take all reasonable steps to seek to recover value for shareholders from these unacceptable events," he added.
Premier Gold said it is unlikely that a resolution will be achieved in time to allow the company to conduct any field work prior to the end of the current field season around November and is seeking a resolution before the beginning of the 2015 field season or to seek compensation for its loss.
"I cannot however assure you at this time that either will be achievable," said Stewart.
"The board is doing all it can to salvage value for shareholders from the injuries which have been inflicted upon the company by the unlawful interference with our operations. At the same time the directors are assessing other opportunites for the company to create value. The board appreciates the patience of shareholders," he added.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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