Touchstone Gold weighed down by funding concerns

1st Apr 2014 10:24

Toronto-based and Columbia-focused explorer Touchstone Gold sank lower as it admitted it would have to give up its mining concessions unless it can quickly secure funding. The AIM-listed company lost US$18.7m, or $0.09 a share, up from $10.2m and $0.08 the year before, meaning it had only $12,025 in cash at the period end.Touchstone said that, in light of the weak financing market for junior resource companies, "there is significant doubt in the company's ability to continue as a going concern".The board, whose members were not paid any cash as part of a cost-cutting exercise, has been reviewing a number of financing options. "The company continues to be engaged in a number of strategic conversations with the intention of reviewing possible transactions that might be accretive in value for all shareholders. A further announcement will be made as appropriate," Touchstone said.Stage-four drilling activity at one location at its Segovia project in northern Columbia indicated recoveries from 87.9% to 95% gold in floatation concentrate with cyanide leaching providing recoveries ranging from 40.5% to 90.7%. The company also made a surface discovery of a new gold zone 350m west of the Pepas and Filodehombre trends.Shares in Touchstone were down 22.7% to 0.43p at 11:10 on Tuesday.OH