7th Mar 2014 09:45
LONDON (Alliance News) - Shares in Sula Iron and Gold PLC dropped Friday morning, after it said losses widened in its last financial year and it raised a further GBP2.1 million in a new placing.
The iron ore and gold exploration company, which is yet to generate any revenue, said that losses for the year ended September 30, 2013 widened to GBP2.0 million, compared with a GBP0.6 million loss the prior year, largely due to administrative and exploration costs in Sierra Leone.
The group said total equity at year ended stood at GBP3.7 million, compared with GBP4.0 million a year earlier.
Sula said it has made significant progress on its exploration programmes at its flagship Ferensola Iron and Gold Project located in the mineral rich Sula-Kangari Greenstone Belt in Sierra Leone.
It said that multiple high-priority targets have been identified as hosting hard rock gold mineralisation.
"With a clear exploration programme planned for 2014, a strengthened management team, improved cash position and highly prospective licence area, I believe we have all the necessary foundations in place from which to generate value," the company said.
Since year end, Sula has raised GBP3.5 million through a share placing, which will help it meet development objectives for the current financial year and exploration targets, and announced Friday that it has raised a further GBP2.1 million via a placing.
In a separate statement, it said raised the GBP2.1 million in an oversubscribed placing of 93.3 million shares at 2.25 pence each. Every four placing shares also include a warrant to subscribe for one further new ordinary share at 4 pence a share.
It said it will use the funds to conduct further infill drilling at Ferensola to enable it to define a JORC Direct Shipping Ore Mineral Resource estimate by the end of 2014.
"We will continue to explore the resource potential of the gold, and look forward to utilising the results expected from our recent exploration programme, which will enable us to locate the optimum sites for a diamond drilling programme. Through this defined dual development programme, I believe we can unlock the intrinsic value of Ferensola," the company said in its earnings statement.
Shares in Sula Iron and Gold were down 14.2% in early trading Friday, at 2.51 pence .
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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