(Alliance News) - Thor Mining PLC on Monday confirmed its plans to continue operations, saying it possesses enough funding for the next two financial quarters at least.
Shares in Thor were down 13% at 0.65 pence in London in afternoon trading.
The confirmation was in response to questions posed by the ASX as to whether Thor thinks it will continue to have negative operating cash flows and what its plans are to raise more cash.
Thor explained to the Australian exchange that it does indeed expect to have negative operating cash flows, as is "consistent with other mineral exploration companies". The amount of these cash flows will depend on the quantity of exploration activities planned by Thor.
Further, Thor also said it has cash of AUD944,000 or about USD640,000 and is expecting more than AUD200,000 in the next two months as a research and development tax incentive payment.
While Thor does expect to spend AUD657,000 in its next quarter, at least AUD150,000 of this is at the company's discretion. Ongoing average operating costs, moreover, are below AUD400,000. Thus Thor is "currently funded for two quarters".
Thor also believes it has "various options" to procure additional funds and will take steps to raise such funds "as appropriate".
Asked if it expects to be able to continue operations and achieve its business objectives, Thor said it does expect to do so - having funds for "at least the next two quarters" along with options to raise more funds in that period.
Thor Energy (THR)