PERTH (miningweekly.com) – South Africa-focused Mintails on Wednesday announced that it had secured short-term funding to meet its immediate working capital requirements.
The ASX-listed gold miner said that it had secured some $1.9-million in funding from a major shareholder, after recent production shortfalls resulted in the company experiencing a shortage in working capital.
Mintails previously reported that the production shortfall was expected to continue in the near term, as the company worked to identify and address the cause, allowing production to return to a cash flow positive position, as soon as possible.
The company noted that the short-term funding in part settled the remaining portion of the previous A$1-million shareholder facility, which would be rolled into the new facility.
Settlement of the short-term facility would be determined in conjunction with the investigation into the cause of the production shortfall.