Vancouver-based Orca Gold’s share price partially recovered on Tuesday, following a sharp sell off the previous day on news of a military coup in Sudan, where the company is developing the Block 14 mine.
The Canadian Venture Exchange-listed company’s stock gained 12.5% on Tuesday, closing at C$0.50 a share. The gold junior’s shares fell by as much as 75% on Monday, to a low of C$.41 a share.
CEO Rick Clark on Tuesday addressed the political situation in Sudan, stating that it had resulted in a lot of “panic selling” in the market.
He said, however, that while it was not “business as usual” at the moment, Orca remained confident that Block 14 would achieve production as scheduled.
All agreements to advance our project have been signed and our decision to build this gold mine has not changed. This is supported by yesterday's statement by General Abdel Fattah Abdelrahman al-Burhan that all commercial agreements will continue to be honoured by the government,” Clark stated.
With a present value of more than $1-billion at today's gold price, Block 14 will be the biggest mining operation in the country and will ensure significate benefits to Sudan and its people.
Orca last week signed the final development agreements with the government, but on Monday a military coup ensued, dissolving the civilian government.
“We are monitoring the current political situation closely and will report back as more information becomes available,” said Clark.