Shares in Chaarat Gold Holdings Ltd (AIM:CGH) tanked almost 50% amid a debt crunch and the departure of its executive chairman.
The latter was the result of Martin Andersson's role as a major shareholder and provider of working capital to the business via Labro Investments and the potential conflicts the position may have posed.
His exit is set against the more worrying backdrop of $38.9 million of convertible loan notes falling due at the end of the month and a further $1.2 million by September 30.
Chaarat said it had made limited headway with Xiwang International Company over a previously announced funding package.
In the meantime, it has been in negotiations with representatives of the convertible loan note holders over recent weeks to hash out a potential restructuring of the outstanding debt.
"Discussions are not concluded as yet, and there is no guarantee a positive conclusion will be reached in which case the board will need to consider its limited remaining alternatives, being mindful of its fiduciary duties to protect creditors," investors were told.
With little certainty over the outcome, the shares dropped 1.4p to 1.34p, valuing the business at less than £10 million. In the past year, 85% has been wiped from the value of the business.