21st May 2019 17:21
LONDON (Alliance News) - Wishbone Gold PLC said Tuesday the gold recoveries from its Honduras plant have been low.
Shares in Wishbone Gold closed down 35% at 0.050 pence each.
Wishbone said it is making efforts to improve the quality of the feedstock at the plant but, as a result, is considering its stake in the venture.
"The group is reviewing its strategic options for the operation in which the group has a remaining capital investment of approximately USD250,000. The original investment was USD450,000 but USD200,000 of this has been recouped from retained gold shipments," the company said.
"Options being considered include negotiations for the possible sale of our interest in the operation to our joint venture partner or us taking full control of the operations. As and when anything definitive is agreed, this will be announced," Wishbone continued.
Overall, Wishbone said, its trading in the early part of 2019 has seen its volumes increasing, particularly in March and April.
"Margins remain low as a result of competition and only a modest contribution is being made towards group overheads," added the company.
Wishbone said it is "focused" on growth and expansion in Africa and Asia, with "new initiatives" being explored in Hong Kong. The company said these plans could make up for delays at its Honduras project.
Wishbone said: "Growth through acquisition is being investigated and we will update the market as soon as any firm agreements are made."
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