PENINSULAR Gold’s wholly-owned subsidiary, Raub Australian Gold Mining Sdn Bhd (RAGM) has secured agreement from Alkhair International Islamic Bank Ltd to defer its quarterly capital repayments until June 2015. Alkhair had previously agreed to defer its quarterly repayments from December 2014 until March 2015.
RAGM has also secured agreement from Bank Rakyat Kerjasama Malaysia Bhd for the deferment of payments to the bank from November 2014 until June 2015.
Earlier this year Peninsular raised 1.8 million pounds in a placement with funds used for working capital and the intended resumption of mining at the Raub plant during the second quarter.
The placement funds have helped alleviate any uncertainties that operational cashflows will be in time, or sufficient, to meet repayments for the group’s borrowing facilities.
As of early April RAGM remained in discussions with relevant authorities regarding the restarting of the Raub plant and operations. RAGM has been in discussions with relevant environmental authorities regarding the requested change in conditions pertaining to the location of RAGM’s tailings storage facilities, as announced on December 2, 2014. This matter is progressing and RAGM management is confident that the issue will be resolved in the near future.
Trading in Peninsular Gold’s shares was suspended on December 2, 2014 pending clarification of the company’s financial position. Subsequently, Peninsular announced a delay in the publication of its annual report and accounts to June 30, 2014 which is due to the issues relating to the going concern position of the company as a result of the halting of operations at Raub.
Until Peninsular resolves this, the company will also not be a position to publish its half yearly report to December 31, 2014. Consequently, there will be a delay beyond March 31, 2015 in the publication of the half yearly report and the lifting of the suspension of trading in the company’s shares on AIM is also pending such publication.
Peninsular Gold, together with its subsidiaries is engaged in the exploration and development of gold deposits in the state of Pahang. The company is also engaged in the production and sale of gold dore bars, and construction of carbon-in-leach plant. The company’s subsidiaries include RAGM, which is engaged in mining and SEREM Malaysia Sdn Bhd, holds mining rights.
Baker Steel Capital Managers interest in Peninsular’s ordinary shares has reduced to 2.78% following the CF Ruffer Gold Fund moving its funds management back in-house. The CF Ruffer fund remains the owner of 6.07%.