Bellzone Mining plc (AIM: BZM) announces the following corporate update.
On 25 May 2018, the Company stated in its final results announcement for the year ended 31 December 2017 that the Group cash flow forecasts indicated that additional funds would be required in December 2018, and that if alternative forms of financing were not available it would continue to be reliant on further funding from its majority shareholder, Hudson Global Group Limited (“Hudson”) primarily on the undrawn amount under a loan facility.
The Company, ahead of publication of its interim results for the period ended 30 June 2018, had sought reassurance of such support from Hudson. However no assurance has been received.
Consequently the Company has determined it cannot rely on Hudson advancing further funds and is reviewing alternative financing options available to the board, including potential new equity investment (which would require Hudson consent to approve a resolution to issue further shares which is being sought) and the monetisation of its port asset.
Whilst the Company’s existing cash resources are forecast to last until December 2018, it will be necessary in the board’s view to raise further funds by mid-November 2018 to maintain the Company’s status as a going concern.
There can be no assurance that the Company will be successful in its efforts to raise such funds in which case it may be necessary to invoke an insolvency procedure.
The Company will provide an update in due course.
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