9th Oct 2018 14:45
LONDON (Alliance News) - Metals Exploration PLC on Tuesday said it will run its Runruno mining operation in the Philippines at 80% capacity in October and November.
Shares in the natural resources exploration & development company were down 21% at 1.49 pence on Tuesday.
This move follows discovery of a software issue with its mine scheduling software which meant that the amount of waste needed to be stripped in order to access the stage two ore in the pit was underestimated.
This delay has altered the ore type mix and restricted ore supply to the miner's processing plant meaning that operations will be run at 80% of design for two months in order to maintain its BIOX circuit.
"The company is disappointed with this unfortunate development as it had previously achieved and maintained stable design throughputs in its BIOX circuit," said Metals Exploration.
The software error has been corrected and full processing is to resume in December.
Metals Exploration also said that it remains in discussions with its senior lenders while it seeks clarification on the status of a possible waiver.
In its half-year report at the end of September, Metals Exploration said that its subsidiary, FCF Minerals Corp, has been negotiating a potential restructuring of a senior finance facility with the senior lenders. FCF had sought and received waivers for USD20.3 million worth of capital repayments at that time.
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