30th Mar 2016 11:29
LONDON (Alliance News) - AIM-listed Emerging Market Minerals PLC, which operates in Madagascar, on Wednesday said it probably needs further funding to avoid insolvency, after agreeing to borrow money from a company beneficially owned by Executive Chairman Martin Nicholls.
The uranium, thorium, base and precious metals and gemstones exploration and development company, said it agreed a GBP100,000 working capital loan facility with Matryoshka Ltd, drawing down the funds in full.
The facility is unsecured and has a fixed term of eighteen months, when it must be repaid in full, together with an interest payment, accrued daily, of 5% per annum, in cash.
Emerging Market Minerals said its ability to continue as a going concern depends on whether it can raise further funds to meet operational and capital commitments, including those relating to sourcing, evaluating and acquiring new assets.
"The board currently remains confident that it will be able to secure additional working capital in the short term, as required," Emerging Market Minerals said in a statement.
"The board and its advisers are currently exploring various financing options, but 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," the company said.
Shares in Emerging Market Minerals were down 7.7% at 24.00 pence on Wednesday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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