W Resources PLC (AIM:WRES) said it believes it is not in the company’s best interests to remain listed on AIM at the current time, after its nominated adviser (nomad) and broker both resigned.
The company, which recently started mining its La Parilla tungsten mine in Spain, said it intends to continue operating as a tungsten, tin and gold exploration, development and production company and “hopes to seek a relisting on a stock exchange should circumstances allow and when appropriate”.
However, it said Grant Thornton has resigned as its nomad and that Alternative Resource Capital and Shard Capital have resigned as its AIM brokers immediate effect.
Earlier this month, the company’s shares were suspended at its request due to “extraordinarily challenging” operating and commercial conditions from the huge rise in liquid natural gas prices.
Noting that AIM Rules for Companies stipulate that if a company ceases to have a nomad the London Stock Exchange will suspend its shares from trading and that if it does not appoint a replacement nomad, its shares will be cancelled from admission to AIM.
“In light of the unprecedented difficult financial and operating circumstances in which the company finds itself…. the W board believes that it is not in the company's best interests at this point in time to remain admitted to trading on AIM and consequently, the company has no current intention to appoint a replacement nominated adviser,” the company said it a statement.
“We continue to work constructively with our major financiers and prudently manage operations in these challenging circumstances.”
The shares are expected to cease trading on or around 24 May 2022.
The W board was said to be “giving consideration as to how best to enable shareholders to trade their ordinary shares and shareholders will be advised of any future arrangements in due course”.