29th Nov 2019 18:03
(Alliance News) - MetalNRG late Friday said it is to focus on the development of its Gold Ridge Project amid uranium mining issues in Kyrgyzstan, as it reported interim results.
In the six months to August 31, the company's operating loss widened to GBP260,228 from GBP98,780 last year. MetalNRG reported increased administrative expenses of GBP179,859 from GBP105,206. The company did not generate any revenue during the period.
In July, the company's listing moved from the NEX Exchange Growth Market to the standard segment of the official list of the Financial Conduct Authority and trading commenced on the main market of the London Stock Exchange.
The company said the listing process took longer than expected due its uranium project in Kyrgyzstan being suspended in light of a proposed ban by the local government of any exploitation of uranium. Due to the proposed ban on uranium mining in the Kyrgyzstan not being resolved, it was agreed with the in-country partner that the company would not invest any further in the project until there is clarity on the issue, it added.
As such, the company will now turn its attention to the development of its Gold Ridge Project in Arizona. The company believes that three historical producing mines, including the Gold Ridge Mine, within the Gold Ridge Project area are part of one system and review work will continue in greater detail to establish if this is the case.
MetalNRG said it now intends to develop the Gold Ridge Mine by generating cash flow from the operation and exploring for further upside, while at the same time assessing new projects as investment opportunities.
Chair Christopher Latilla-Campbell commented: "We are encouraged by the positive exploration results from our Gold Ridge Project and the work on plans to monitise these continue apace. [Chief Executive Officer] Rolf Gerritsen and his team are also pursuing additional projects in parallel to these and we hope to be able to disclose these shortly."
The stock closed down 23% at 0.87 pence on Friday.
By Arvind Bhunjun; [email protected]
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