DJ Nyota Minerals Sees FY13 Working Capital Shortfall, Halts Drilling
Jan 21, 2013 (Dow Jones Commodities News via Comtex) --LONDON--Nyota Minerals Ltd. (NYO.AU), an East African focused gold exploration and development company, said Monday it has received invoices in relation to definitive feasibility study, or DFS, and exploration activities in 2012 causing an expected working capital shortfall in the quarter ending March 31, and it has therefore suspended all drilling operations.
-Board continues to undertake a review of the shape and size of the business required to continue the development of its 100% owned flagship Tulu Kapi Gold Project in Ethiopia, and meet obligations in respect of Nyota's other exploration licenses as well as ensure the cost structure is appropriate for the Company's needs.
-During the quarter ended Dec. 31, Company's cash utilization was broadly in line with its estimate; cash at bank (before adjusting for creditors) at Dec. 31, 2012 was 3.0 million Australian dollars.
-Significant cost cutting measures are being introduced immediately.
-Board has been, and continues to be, in discussion with various parties, including major shareholders, to secure interim funding to enable Nyota to complete its negotiation of the fiscal and legal terms for the issue of the Mining License.
-Discussions currently underway cover both equity and debt instruments and the Board is confident of securing interim funding through one of these initiatives in the very near term.
-Feeder Zone drilling program started in September 2012 at Tulu Kapi and the successful Feeder Zone drill program demonstrates the potential for a significant high grade resource that would be developed via an underground mine.
-New high grade intersections in the Feeder Zone include: 15.04g/t Au over 9.45 meters, 10.55g/t Au over 13.96 meters, 5.34g/t Au over 12.25 meters and 5.24g/t Au over 26 meters.
-Initial in-house Inferred Resource estimate of 1.1 million tons at an average grade of 5.4g/t containing 188,000 ounces of gold.
-Feeder Zone is open down-plunge in a north-northeast direction and crops-out in the proposed open pit in the "Southwest Extension".
-Shares in London at 0800 GMT up 3.03% at 4 pence valuing the company at 27.26 million pounds.
-Write to Ian Walker at email@example.com
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