30th Sep 2015 11:12
LONDON (Alliance News) - North River Resources PLC Wednesday said its pretax loss narrowed in the first half of 2015 after it cutback its explorartion expenditure as it waits for the mining licence to begin develop the Namib project.
The company, which is focused on developing the Namib lead and zinc project in Namibia, reported a GBP1.4 million pretax loss in the first six months of 2015, narrowing from the GBP1.7 million loss a year earlier.
That was the result of the company slashing its exploration expenditure to only GBP692,150 from GBP1.1 million, partially offset by a small rise in administrative expenses.
North River is awaiting the mining licence from authorities in Namibia for the project whilst securing the finance for the development. The Namib project entails re-opening a previously producing mine and construction of a new plant to process 250,000 tonnes of ore per annum over an initial 3.5 year mine life, with the hope of extending the mine-life in the future.
The company estimates that a total of USD25 to USD30 million in funding will be required to bring the Namib project into production. In August, it announced an initial near term financing plan to raise USD4 million to progress the Namib Project to a construction decision.
"The Phase One Fundraising will enable us to undertake the FEED; early development of the Namib Project's North decline; sourcing of plant and equipment; on-going underground development programme required to establish access for the next phase of resource expansion drilling; and early stage recruitment of technical and operational staff," it said.
North River shares were up 5.6% to 0.190 pence per share on Wednesday.
By Joshua Warner; [email protected]; @JoshAlliance
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