JOHANNESBURG (miningweekly.com) – Australia’s Winmar Resources has slashed its staff salaries and directors fees by half to minimise cash outflows until it has secured a new lead project.

The announcement on Tuesday comes a day after the company said that it had withdrawn from the Lomero joint venture project with Kimberly Diamonds, in Spain. Kimberley Diamonds is under administration.

Winmar said it had tried to acquire the Lomero project, which is prospective for gold, silver, copper and zinc, adding that it had informed Kimberley Diamonds’ administrators of its intention to buy it outright on a number of occasions.

When Kimberley Diamonds went into administration, Winmar had started its search for a new mineral project, with opportunities in gold, copper and zinc, together with new energy metals lithium and cobalt, being considered.

“Multiple projects have been reviewed and advanced discussions have been held with several vendors,” the company reported this week.

To assist with an acquisition, Winmar recently raised about $492 000 in a private placement and rights issue.

Until a new lead project has been secured, staff and directors will be earnings significantly less. Nonexecutive chairperson Alex Alexander’s director fee has been reduced by 30% to $70 000 and nonexecutive director Noel Halgreen’s fee has been reduced by 20% to $40 000. The salaries of MD Rod Sainty and GM Andrew Bray were reduced by 60% to $88 000 and by 59% to $57 000, respectively.

“We are very mindful of the need to preserve shareholder funds during the search for a new lead project. I am optimistic that we can secure an attractive project within the coming months,” commented Sainty.

In July, Winmar relocated its business premises out of the Sydney central business district to reduce office lease expenditure. The relocation will save the company $120 000 a year.