Metals Exploration Plc (LON:MTL) is in talks with major shareholders in a bid to raise US$5mln for additional working capital, it revealed, adding that the milling at the Runruno gold mine had resumed.
The group suspended milling at the site in the Philippines after feeding-in problems at the tail end of June.
Immediate additional funding is needed now due to the mill suspension delaying expected revenue, debt restructuring discussions taking longer than expected, and a requirement by lenders to make a bi-annual interest payment against the current Runruno facility, the miner said.
No agreement on the US$5mln has as yet been reached and a further announcement will be made.
Discussions on restructuring Runruno's US$75mln debt facility and $8mln cost overrun facility continue after the group failed to meet the required US$15mln capital payment, which was due on June 30.
Metals Exploration's shares in London fell almost 24% to stand at 7.63p.