29th Oct 2014 09:48
LONDON (Alliance News) - Bacanora Minerals Ltd posted a wider pretax loss on Wednesday on the back of a rise in impairment costs in the period.
The Americas-focused minerals company, in which Rare Earth Minerals PLC has a 12% shareholding, said its pretax loss widened to CAD2.7 million against CAD749,000 in the year to June 30 as its costs for the period increased to CAD2.6 million from CAD826,000. The company generates no revenue.
That figure was driven higher by a CAD1.2 million impairment charge taken on the Tubutama borate project in Mexico after it allowed its concessions to lapse.
Going into the new year, the group said it is carrying out pre-feasibility studies on the Sonora lithium and Magdalena borates projects. It did not say when it expects to complete the study at Sonora, but the Magdalena study is due to be completed in the first quarter of 2015.
It said it has CAD12.5 million in cash and trust as of Tuesday.
Bacanora shares were down 5.6% to 53.08 pence on Wednesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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