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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Gold & silver

Metals Exploration to seek more funds as Runruno ramp-up slower than expected

Metals Exploration has four very supportive shareholders

Metals Exploration Plc (LON:MTL) is still being hampered by permit delays and processing issues at its Runruno gold mine in the Philippines.

Gold production and revenue from sales have been lower than forecast, which has put significant pressure on cash reserves it said.

But Metals Ex has four very supportive shareholders, including property developers the Candy brothers, and it added it was confident of negotiating further working capital funding prior to 30 June.

That is when the first repayment of US$10.7mln is due following an US$81mln debt rescheduling last December.

At that time the miner had cash reserves of £6mln, but today said that without the working capital facility or additional funding it would struggle to meet the payment deadline.

Up until the end of March, Runruno had produced 16,552 ounces of gold, with design capacity expected to be achieved in the second half of 2017.

Losses for the year to December were £18mln (£2.15mln) on revenues of £5.8mln.

Shares fell 0.96p to 2.41p.

--updates for share price--

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