West Africa-focused Bellzone Mining requested a suspension of trading in its shares on the London bourse on Monday, warning that it would go insolvent if it could not source funds in the “very near term”.
The troubled company, which develops iron-ore and nickel/copper assets in Guinea, previously said that it was in discussions to raise further funds. One such option was to raise more money from its largest shareholder, Hudson Global Group, but this avenue has reached a dead end and the company said that it had been informed that Hudson would not provide any additional funding.
Bellzone said that it was now looking to sell Konta Port – an iron-ore barge terminal intended to export ore from Yomboyeli in Forécariah.
“The company's working capital position remains tight and there remains the risk that unless further funds are sourced in the very near term then the company will need to invoke an insolvency procedure,” it said in an announcement published on the Regulatory News Service of the London Stock Exchange.
Its shares were suspended on the Aim, pending clarification of its financial position. Its stock last traded at 0.25p a share.