30th Jun 2016 07:38
LONDON (Alliance News) - Sula Iron & Gold PLC Thursday said it is currently in "late stage" negotiations about introducing a joint venture partner to the Ferensola gold project, including the supply of additional working capital, as the company's loss widened in the first half.
Sula Iron shares were up 10% to 0.182 pence per share on Thursday morning.
Sula Iron has drilled, sampled and surveyed its flagship gold project in Sierra Leone and has "drill ready" targets waiting to be developed, but the company is very low on cash and is hoping to find a partner to join the project to help fund and advance the asset.
Sula Iron raised GBP1.0 million during the first half to fund the work to identify those targets waiting to be drilled, but reported a cash balance of only GBP275,000 at the end of the period.
"In this regard, Sula is currently in advanced discussions with respect to securing a potential joint venture partner to assist with the development of its Ferensola gold project, including the provision of additional working capital to Sula," said the miner.
Sula Iron reported a pretax loss of GBP1.1 million in the six months to the end of March, wider than the GBP892,000 loss reported a year earlier as administrative costs increased to GBP930,000 from GBP824,000 and share-based payments experienced a lift to GBP181,000 from GBP68,000.
By Joshua Warner; [email protected]; @JoshAlliance
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