15th Dec 2015 10:20
LONDON (Alliance News) - Aurasian Minerals PLC shares dropped on Tuesday after it said it has turned its attention to the Chadine project in Serbia and placed its operations in South-East Asia on hold following a recent review of its exploration assets.
Aurasian shares were trading down 20% to 0.300 pence per share on Tuesday morning.
The company, which is focused on exploration in South-East Asia, reported a GBP281,000 pretax loss in the six months ended September 30, widening from the GBP208,000 loss reported a year earlier on the back of higher operating expenses. The company does not generate any revenue.
Aurasian's cash balance dwindled to GBP664,000 at the end of September from GBP745,000 at the start of the financial year.
At the start of December, the miner signed a heads of terms agreement to fully-acquire Moroccan Minerals Ltd, giving it access to an earn-in agreement signed by Moroccan Minerals to earn up to an 80% stake in the Chadine polymettalic project in Serbia.
After reviewing its existing exploration assets based in Laos and Myanmar, also known as Burma, Aurasian said it has concluded it must put all of its focus onto the Chadine project going forward, meaning it has put its plans in South East Asia "on hold for now," it said.
At its two other assets in Papua New Guinea, the miner is hoping to secure regulatory approval so it can sell its interest in he Wamum project, and is expecting to secure payment for the sale in the first half of 2016. Aurasian continues to hold a royalty interest in the Morobe project, which is being explored by the operator.
By Joshua Warner; [email protected]; @JoshAlliance
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