1st Dec 2015 08:22
LONDON (Alliance News) - Sovereign Mines of Africa PLC saw its shares plunge on Tuesday morning after the company said talks with a potential partner for the redevelopment of its Mandiana project in Guinea have been suspended.
The company said the talks collapsed after approval from the potential partner's board had not been forthcoming in a timely manner.
Sovereign Mines also said it will be undertaking a capital raise which will be done at a price significantly below its current market price. It added, however, that without a capital raise, it will not be able to continue operating.
"We have been engaged in intensive and protracted negotiations with a substantial mining company. It is therefore very disappointing that no agreement has been signed and I would like to apologise to shareholders for the uncertainty that this has caused," said Chairman David Pearl.
Sovereign Mines shares were down 65% to 0.2255 pence early Tuesday, the worst performer in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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