not looking good27 Oct 2016 09:18
A prolonged cessation of operations may mean that the mine cannot be re-started without significant investment, if at all, and will likely have a material adverse effect on both SMB's and the Company's financial position. In particular, funding will likely be required to support the Company's head office operations ahead of the completion of the Tri-K transaction (as detailed below), which, subject, inter alia, to shareholder and regulatory approvals, will result in the receipt by the Company of an initial consideration of US$4.0m (approximately US$2.5m after costs). However, meetings are due to be held in Ouagadougou, the capital of Burkina Faso, in the coming days between representatives of the mine, its workforce, and government officials to try to find a resolution to the situation and to avoid a prolonged cessation.
If funding is required before completion of the Tri-K transaction and such funding is not available from Inata or the Company is unable to secure alternative funding, the Company will likely enter an insolvency process in which circumstance it is highly unlikely that any value will remain for shareholders.