31st Oct 2014 11:37
LONDON (Alliance News) - Wildhorse Energy Ltd Friday reported a wider pretax loss for the recent financial year as it looks to raise much-needed cash to develop its one remaining active project in the US and to pursue new opportunities.
The company's pretax loss widened to AUD7.8 million for the year ended June 30, compared to a AUD5.1 million loss in the 2013 financial year. Wildhorse, which does not currently make any revenue, generated AUD683,602 through other sources of income, including net gains from the disposal of plant and equipment, compared to AUD492 a year earlier.
The wider loss is mainly attributable to a AUD4.0 million impairment of one of its exploration assets in Hungary and a AUD2.0 million loss on disposing of one of its US companies.
Cash at the end of the year totalled AUD404,143 as the company looks to raise further funds to progress the company.
Wildhorse is continuing with its restructuring of the company and has proposed a consolidation of shares, which if approved, will be followed by an entitlement issue to raise funds to pursue new opportunities.
Wildhorse are waiting to receive approval from its shareholders on November 25, regarding its proposal to consolidate the number of shares in the company. Wildhorse wants to replace every 30 shares in the company for one share to bring the total number of issued shares in the company to 13.6 million.
If it is approved, the consolidation of shares will be followed by an entitlement issue to raise up to approximately AUD3.8 million before costs, it said.
New shares issued under the entitlement issue will be offered for AUD0.05 per share and shareholders will be able to buy and sell on the Australian Securities Exchange, not on AIM in London, it said.
The money raised will be used to pursue new opportunities and to progress its Golden Eagle uranium project.
Wildhorse has one remaining project, the Golden Eagle uranium project in the US, after it announced it will cease all of its operations in Hungary earlier this month. The company decided not to pursue a joint venture for the Mecsek Hills uranium project and is still seeking to divest all or part of its interest in the Mecsek Hills UCG project.
The company signed a binding heads of agreement in February to sell the assets from the Mecsek Hills UCG project to Linc Energy Ltd for AUD4 million and said the deal was in the conclusion phase in July, but no developments have emerged since.
"The board is confident that following the recent cost-cutting measures and ongoing company restructure, which had already significantly reduced the company's operating and administrative expenses, the funds raised from the entitlements issue will enable the company to progress the company's current projects and pursue new opportunities in the resource and other sectors," it said in a statement.
Wildhorse shares were up 20% to 0.300 pence per share Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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