RNS OUCH!31 Mar 2020 12:30
Based on financial projections prepared by the Directors, the Group's current cash resources are insufficient to enable the Group to meet its recurring outgoings and projected exploration expenditure for the entirety of the next twelve months. However, the Directors have a reasonable expectation that the Group will continue to be able to meet its commitments for the foreseeable future by raising funds when required from the equity capital markets. The Group and Company may also consider future joint venture funding arrangements in order to share the costs of the development of its exploration assets, or to consider divesting of certain of its assets and realising cash proceeds in that way in order to support the balance of its exploration and investment portfolio.
Given the current share price of the Company trades below its par value of £0.001, the ability of the Company to raise funds by the issuance of shares is currently constrained since, under the Companies Act 2006, the Company may not allot shares for an issue price less than their par or nominal value. However, it is noted that the Company intends to put forward a resolution to reduce the par value of its ordinary shares to £0.0001 at its forthcoming Annual General Meeting to be held in April 2020. Assuming that resolution is passed, the Company will thereafter be able to issue ordinary shares at or above that new par value