Cash-strapped Miner Suspended
Cash-strapped miner suspended
GREATER Bendigo Gold Mines has been in a trading halt since Tuesday, pending the release of an announcement on its 'financial issues'.
At September 30, the company had just $A40,000 cash on hand.
The company said it is looking at its options and has been attempting to finalise matters over drawing of the capital notes facility from Pacific Capital Investment Management.
Greater Bendigo announced in March that a $10 million convertible notes facility had been secured from the United Kingdom-managed fund
'With current market conditions, the issues facing GBM and the current level of GBM's share price, Pacific Capital Value has advised that as much as the fund would like to commence investment, given present conditions it would not be feasible for the fund to commence investment at this juncture,' the company said in a statement.
Like many other miners, the company has seen its share price drop dramatically in recent months, from 18c in July, to just 3.7c today.
In its September quarterly, the company reported technical issues at its flagship Inglewood mine, which prevented the first production of gold.
The lack of revenue caused financial stress and led to a reduction in the company's workforce, as well as the sale of non-core assets.
The company was expected to make an announcement by the close of trade yesterday, but entered voluntary suspension this morning.
GREATER Bendigo Gold Mines has been in a trading halt since Tuesday, pending the release of an announcement on its 'financial issues'.