17th Feb 2015 11:12
LONDON (Alliance News) - Weatherly International PLC Tuesday said its shares have been suspended until it can remove the "uncertainty" from its current financial position, and said it has produced the first copper cathode from the Tschudi mine, but warned it is facing technical issues in recovering it.
Weatherly said in a statement it produced the first copper cathode from the Tschudi mine in Namibia, from the project's electrowinning circuit on Monday, but said there is a "number of operational and technical issues" in recovering the copper from the heap leach pads.
As a result, Weatherly said it must undertake further investigative work to understand how it could improve the performance of the project.
"The company is in the process of investigating these issues and will also be discussing them with Orion Mine Finance, its project lender, who has a secured loan over the Tschudi project," said Weatherly.
Dependent on the results of the investigative work, Weatherly will plan a course of action, subject to Orion approving any new plans as per the terms of the company's financing arrangement, it said.
Weatherly shares were suspended from trading on Monday due to the problems at Tschudi and because the company's "financial position is subject to significant uncertainty", the company said.
In January, Weatherly said its operations had become "unsustainable" in the current environment and reported a quarter-on-quarter fall in production after recovery rates and grades fell.
By Joshua Warner; [email protected]; @JoshAlliance
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