27th Aug 2020 16:27
(Alliance News) - Greenland-focused gold miner AEX Gold Inc on Thursday said increased exploration and evaluation activities and a stock based compensation for managers resulted in a widened loss for the first half of 2020.
The company added that it is progressing talks to secure additional non-equity funding in the form of a modest working capital facility, vendor financing or similar, to accelerate exploration activities across its portfolio of gold assets in south Greenland.
Chief Executive Officer Eldur Olafsson said: "Whilst we will look to execute on this facility as soon as possible, we are in a very strong position post-fundraise and will take time to ensure that any facility we enter into offers the best terms to our company and shareholders, and look forward to updating the market at the appropriate time."
At June 30, AEX Gold had a cash balance of CAD4.4 million, around GBP2.5 million, with no debt and total working capital of CAD3.0 million. Following the six months to June 30, the company completed an equity placing raising gross proceeds of CAD72.7 million.
AEX Gold, which is listed in London and Toronto, posted a net loss of CAD3.4 million for the six months to June-end, sharply widened from a CAD1.1 million loss in the year ago period.
Exploration and evaluation expenses during the period were CAD1.5 million versus CAD565,822 a year ago, driven by increased activity on the Nalunaq property and its regional exploration portfolio.
First half general and administrative expenses jumped to CAD881,550 from CAD493,796, with the increase a result of higher management, consulting and professional fees.
No revenue was generated in either periods, as the company is still in project evaluation phase.
For the second-quarter to June-end, the company's net loss totalled CAD2.4 million versus CAD673,725. Exploration and evaluation expenses jumped to CAD912,676 from CAD397,220.
In the first half, the company was granted two new mineral exploration licences in south Greenland, namely Saarloq and Anoritooq, covering an area totalling 2,528 square kilometres, taking the company's full license area to 3,356 square kilometres.
AEX Gold intends to conduct exploration activities over these new licence areas, as well as it's wider regional portfolio, as part of its 2020 summer work programme.
Shares in the company were flat at 46.00 pence each in London on Thursday afternoon.
By Tapan Panchal; [email protected]
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