Metals Exploration Plc needs another injection of funds with the company still suffering the effects from a series of delays in getting its Runruno Gold Project in the Philippines up and running. The company is not expecting to receive first gold sales revenue until late September.
In late July the UK-based group raised US$5 million but major debt restructuring discussions have yet to be resolved.
After a tailings problem with the mill earlier this year, the company says production is now increasing, with gold pours on a weekly basis.
The BIOX circuit has commenced its ramp-up schedule with high levels of biological activity being achieved and should start to feed product into the CIL (carbon-in-leach) circuit by mid-September.
The company is currently required to pay interest accruing on a US$15 million capital payment on a monthly basis. Talks have started with its major shareholders but no agreement has been reached.
The shareholder register is dominated by property developing brothers Nick and Christian Candy with a 48% stake, but three other shareholders, Graham Edwards and investment groups Ruffer and Baker Steel, own a further 39%.
Discussions also continue over a restructuring of the US$75 million debt facility and US$8 million overrun that funded the construction of Runruno. Metals Ex missed the US$15 million capital payment due on June 30.