[miningmx.com] – SHARES in London Mining slumped to a record low after it disclosed it was in “detailed negotiations” regarding funds from a potential investor to help it fund an expansion of its Sierra Leone iron ore mine.
Citing the company announcement, Bloomberg News said in an article that London Mining was also seeking a “material cash injection which will give rise to a significant dilution to the existing equity and a revised capital structure’.
The company, which is also in dispute with Glencore over a pre-payment for iron ore, has seen its share price fall 92% this year, partly informed by the outbreak of the Ebola virus in Sierra Leone but largely owing to the decline in the iron ore price.
“At present the company does not have sufficient liquidity to enable it to continue to trade through this period without raising further finance,’ it said.
Click here to read the full article
