Touchstone Gold seeking additional funding

21st Jan 2014 16:20

AIM-listed Touchstone Gold said that without new funding it will be unable to meet payments to vendors of its concession contracts in Colombia.If this happens, the Toronto-based company said that concession contracts could be ceded back to the vendors and it may lose all or part of its interest in these assets.The firm, which currently holds 11 concessions in Colombia, is currently not spending anything on exploration after having to suspend all activities last year. Touchstone said it is engaged in a "number of strategic conversations with the intention of reviewing possible transactions that might be accretive in value for all shareholders".Meanwhile, the company said that it entered into an agreement to grant nearly 6.55m shares at a price of 0.932p per share by way of a private placement, proceeds of which will be used for general corporate purposes.It has also agreed to convert £20,000 from ECK Partners at a price of 0.932p into 2.15m shares of no par value.The stock was down 41.67% at 0.7p by the end of trade.BC