Last checked at 25 Oct 2017 13:47
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR").
25 October 2017
Wishbone Gold Plc
("Wishbone Gold" or the "Company")
Wishbone Gold Plc / Index: AIM / Epic: WSBN / Sector: Natural Resources
Trading Update
Wishbone Gold plc, the trading and exploration company focused on precious metals (gold and silver), is pleased to announce that its subsidiary Black Sand FZE ("Black Sand") is now receiving full volume shipments from its new supplier in Mali.
Trials started a few months ago, prior to the wet season, and will continue through next year. Roughly $700,000 worth of gold was received last week with volumes expected to increase over the coming months. Gold is expected to be shipped approximately every ten days. This will be shipped as doré and thus will have varying ranges of purity.
The deal was made possible with the additional funding coming from the facility provided by RiverFort Global Capital ("RiverFort"), a strategic partner of Wishbone Gold, as first announced by the Company on 18 August 2017 (the "Facility"). The Company is using part of the Facility to help fund the expansion of small scale mining activities, which has freed up further capital to be used in trading.
The Company's operations in Honduras have been delayed by continuing poor weather conditions. The worst Caribbean hurricane season on record has had a knock-on effect across Central America with flood damage to roads, crops and buildings. The equipment is on site and secure and was tested and run up prior to the storms descending. The next steps for the Company in Honduras are to secure the erection of new buildings so that the mines can process in all weather conditions.
The Board of the Company anticipates that the combined effect of the developments in Mali and Honduras, compared to market expectations for 2017, will be to reduce revenue but have a neutral impact on the bottom line profit/loss numbers.
Wishbone is in various stages of discussion in other countries to reform and expand small scale mining activities. More news will be released regarding new contracts when they are agreed.
Richard Poulden, CEO and Chairman of Wishbone Gold plc stated "We are pleased that Black Sand's new contract in Mali is moving along as planned and we look forward to increasing the volumes in the future. Mali produces 50mt of gold each year, which is mostly from artisanal miners, meaning the opportunities remain significant. In Honduras, the extreme weather conditions faced by the region have set back our timing on site but we still hope to be in production there early next year."
For images and more information on Wishbone Gold please visit the Company's website www.wishbonegold.com.
Enquiries:
Wishbone Gold Plc
Richard Poulden, CEO and Chairman Tel: +44 207 812 0645
Allenby Capital
Nick Naylor / Nick Harriss / James Thomas Tel: +44 20 3328 5656
Beaufort Securities Limited
Elliot Hance Tel: +44 20 7382 8300
Damson Communications
Abigail Stuart-Menteth / Amelia Hubert Tel: +44 207 812 0645