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Wednesday, 14 August 2013
EMED Mining focused on triggering project works
EMED Mining (LON:EMED, TSX:EMD) continued to navigate the regulatory pathway in the first half of 2013 as it seeks to revive the famous Rio Tinto mine in Andalucia.
Since the completion of the Independent Technical Report in February 2013, the company has curtailed spending pending the commencement of project refurbishment works, managing director and chief executive Harry Anagnostaras-Adams observed EMED’s interim results statement.
That helped reduce care and maintenance expenses in the second quarter of 2013 to €354,000 from €1.32mln a year earlier.
The focus now is on triggering project works at the Cerro Colorado open pit of the Rio Tinto Copper Mine. As has been stated publicly by the Andalucian government, the authorities are striving to process the necessary regulatory pre-requisites by the end of the year.
While steady progress is being made on the permitting side of things, the company has been taking care of business on the financing side, with the completion in July of financing to raise £9.6mln (US$15mln).
"The recent closing of the US$15 million foreshadowed product off take linked financing reinforces the long term commitment of major shareholders and complements the plans for project finance which we continue to advance," Anagnostaras-Adams said.
As a non-producing mining company, the second quarter figures are largely of academic interest. They showed a much reduced loss before tax of €1.84mln compared to a loss of €2.72mln in the corresponding quarter of 2012.
At the end of the June, i.e. prior to the July financing, the company had cash and cash equivalents of €434,000.
The company announced that Jasper Bertisen had resigned as a director because of other commitments.
Shares in EMED were up 3% at 6.05p in mid-morning trade after the results.