30th Nov 2015 11:39
LONDON (Alliance News) - AIM-listed Emerging Market Minerals PLC on Monday said its directors and advisers were exploring financing options.
The uranium, thorium, base and precious metals and gemstones exploration and development company, which operates in Madagascar, said directors were deferring their salary and fee entitlements for the past 12 months and until working capital is secured.
"If further funding cannot be secured in the near term from the company's existing major shareholders and/or potential new investors, or alternative sources of potential funding are not available, the board considers that it is highly likely that the company will become insolvent and appropriate insolvency proceedings would ensue, such as entering into administration or commencing liquidation," Executive Chairman Bernard Olivier said in a statement.
"However, the board currently remains confident that it will be able to secure additional working capital in the short term, as required, and a further announcement will be made in due course as appropriate," Olivier said.
The company reported that its loss before and after tax narrowed to GBP227,688 in the year ended June 30 from GBP715,344 the prior year.
"The loss reflects the limited essential expenditure incurred in order to maintain the good standing of our Marodambo project [in Madagascar], corporate running costs and expenditure associated with conducting the requisite due diligence on potential new attractive project opportunities," Olivier said.
Shares in Emerging Market Minerals were down 4.8% at 10.00 pence on Monday.
By Samuel Agini; [email protected]; @samuelagini
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