Norseman Gold (LON:NGL, ASX:NGL) said trading in its shares on the Australian Stock Exchange has been halted at its request pending an update on its operations and corporate restructuring.
The company has previously said that it is currently in talks with a potential strategic partner who are “looking to take an active role in the development of Norseman Gold”.
This potential partner has experience in operating at Norseman, particularly the Harlequin and Bullen mines, and understands the ore bodies and their potential.
Norseman, which also has a London quote, said its shares will not be suspended on the AIM market.
This morning, Norseman jumped 14.5 percent in London to trade at 6.35 pence, valuing the group at £22.75 million.
Norseman’s main project is the Norseman mine in Western Australia. Last month, the company reported that it had reached the targeted hard rock ore at the North Royal open pit, enabling more ore to be added to the overall treatment plant feed.
This should result in an increase in the ounces produced as more tonnes will be able to be treated.
With a direct focus on cost, the company has decided to suspend mining at the OK Decline to reduce expenditure and focus on the areas of the mine that are performing and/or producing profitable ounces.
A detailed review of both the Bullen and Harlequin underground mines and how production and profitability at these mines can be improved is also ongoing with an update expected this year.
The progress report on the Bullen and Harlequin review will also include guidance on gold production for the full year.