30th Apr 2015 10:07
LONDON (Alliance News) - Nyota Minerals Ltd said Thursday that it has decided to withdraw from its activities in Ethiopia after it failed to reach an agreement with a third party for financial and technical support that would justify the renewal of its two Northern Block licenses, and potential investors were unwilling to contribute any further funding.
Nyota has ceased funding its Ethiopian subsidiaries, and is continuing talks on the sale of the northern blocks.
In February the company acquired a 70% stake in KEC Exploration Pty, which is solely focused on a project in Italy. It will fund 100% of KEC's expenses, and the two companies have agreed an initial and non-binding exploration work programme and budget for the next year with a target spend of at least AUD150,000.
Nyota said it is actively evaluation new opportunities to diversify its commodity and geographic spread.
"Our focus remains on keeping operational and corporate costs at a very low level, as we evaluate and implement a value accretive plan to define our future," said Chief Executive Officer Richard Chase in a statement.
Shares in Nyota are trading up 0.1% at 0.0801 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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