14th Oct 2015 10:37
LONDON (Alliance News) - Sovereign Mines of Africa PLC Wednesday said it has extended the exclusivity agreement with a potential unnamed partner on its Mandiana project in Guinea, an all-important deal for the miner as it faces financial uncertainty without it.
Back in July, Sovereign entered into an exclusivity agreement with a third party to establish a potential partnership to develop the Mandiana project. The original deadline for the agreement to be made formal was "early October", but on Wednesday the miner said this has been extended until October 23.
"There can, at this time, be no guarantee that such an agreement will be entered into. A further announcement will be made in due course when the exclusivity period lapses or produces a formal agreement," said the miner.
Back in September, Sovereign said it expected to undertake a fundraising in the "immediate future" but said it would only do so if the partnership is sealed. The miner has received a firm commitment from a director to underwrite a fundraising.
However, it warned that without the partnership being concluded, and refinancing in the immediate term, it will not be able to finance the expenditure necessary to retain its exploration assets and continue in operation.
Sovereign Mine shares were up 30% to 0.417 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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