24th May 2016 09:17
LONDON (Alliance News) - Tungsten Corp PLC on Tuesday said it plans to secure a credit facility before reporting full-year earnings on July 25 to protect itself in the "unlikely" event that the sale of Tungsten Bank is delayed.
In a statement, Tungsten said unaudited figures showed it had GBP9.1 million in cash available at the end of April, excluding cash in Tungsten Bank. The cash balance is GBP1.1 million in excess of board expectations, Tungsten said, and represents an average monthly net cash outflow of GBP1.1 million during the six months to the end of April.
About GBP17.8 million of cash or equivalents was held in Tungsten Bank at that date.
Tungsten Bank's cash balances are reduced to the extent that it has purchased invoice receivables from Tungsten's suppliers, which at 30 April 2016 totalled GBP7.3 million," the company said in a statement.
Tungsten expects the sale of Tungsten Bank to be completed by the end of the first half of its current financial year.
"In the unlikely event that the sale is not completed as scheduled, the board continues to intend to deregulate Tungsten Bank in order to access the GBP25 million of capital on its balance sheet," the company said.
Tungsten expects to finalise the terms of a credit facility prior to reporting full-year earnings, in a move to provide it with access to stand-by facilities to bridge any unexpected delay in the sale of Tungsten Bank.
Tungsten plans to publish results for the year ended April 30 on July 25.
Shares in Tungsten were down 1.7% at 58.00 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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