logo-loader
Deep diveMining
viewRichland Resources Ltd

Richland Resources seeks funds to re-boot Capricorn sapphire mine

Snapshot

Richland wants to resume mining at Capricorn or find a buyer for the project

sapphires

Quick facts: Richland Resources Ltd

Price: 0.0635 GBX

AIM:RLD
Market: AIM
Market Cap: £545.55 k
Follow

Richland Resources Ltd (LON:RLD) is looking to sell its Capricorn sapphire project in Queensland, a socially responsible source of the blue gemstone.

The company earlier this year entered discussions with one party relating to the potential sale, while also pursuing its strategy of securing investment to potentially restart production.

Richland has been able to extend its convertible loan note facilities several times to allow sale discussions to continue.

The company said in early June that it was talking to the provider of the facility about increasing the quantum of the facility to provide additional working capital.

Richland had been preparing the ground at Capricorn pending sufficient funding being secured to recommence mining operations.

Test drilling to facilitate a more focused open pit operation and ultimately higher yield production was also planned.

Anthony Brooke, Richland’s chief executive, said the firm’s sightholder buyers and clients in Thailand were “keen for mining to restart” as inventories were running low and socially responsible sapphire sources were limited globally.

Upon production recommencing, potential forward sales of blue rough production were “very positive”, Brooke said, with non-traditional sapphire cuts reportedly being “highly sought after” in the retail segment.

The miner's last results showed an interim pre-tax loss of US$778,000 as revenues dropped to US$50,000 from US$1mln.

At 0.09p, Richland is valued at £0.5mln.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

BigDish CEO Sanj Naha updates on rollout as London goes live

BigDish PLC's (LON:DISH) Sanj Naha speaks to Proactive London's Andrew Scott as the platform officially goes live in London. ''London's got huge potential'', he says. ''There's three key hub areas where there's a large volume of restaurants - there's scope to have hundreds of restaurants...

1 hour, 11 minutes ago

2 min read