9th Sep 2013 09:13
LONDON (Alliance News) - Strategic Natural Resources PLC Monday said the period of exclusivity it had given an unnamed coal trader to hold talks about investing in the company had now ended and it had therefore started talking with several other interested parties.
It said it was optimistic the talks would be successful, but warned that if they aren't it would have to find other ways of repaying a short-term bridging loan provided by Land Consultants Limited. Those options could include taking on additional debt or issuing new equity.
It said that it still doesn't want to be acquired or to lose control of its Elitheni Coal subsidiary as part of its funding talks.
"It is the opinion of the SNR board that the current share price is in no way representative of the significant value potential of the SNR business," Chief Executive Gabriel Ruhan said in a statement. "The board is optimistic that once appropriate funding is secured, regular coal shipments achieved and operational efficiency improves then the market will appreciate the value proposition and respond accordingly. International coal prices recovering from current bottom of the cycle conditions should provide further upside."
The company's shares were down 2.2% at 10.395 pence Monday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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