JOHANNESBURG: South Africa’s Golf exploration and development company Giyani Gold has reported a net loss of $2.1 million (R24.5 million) for the nine months to September compared with a loss in the prior nine months of $2.4 million.
At the end of September last year, Giyani Gold’s accumulated loss stood at $18 million.
Giyani Gold has operations both in South Africa and Canada and it is listed on the JSE’s AltX and Toronto Stock Exchange. The company had $181 686 in cash available at the end of September, down from $1.4 million at the end of December 2013.
Giyani’s shares have been suspended since August 15 last year, so there was no trade on the local exchange on Friday.
On Friday, Giyani announced that the binding letter of intent agreement with the shareholders of Horizon Enerji and Sumo Coal had expired as a definitive agreement was not entered into by December 31, 2014.
“Although we are disappointed that current market conditions and timing constraints prevented a definitive agreement from being signed before year-end, concluding a deal with the shareholders of Horizon and Sumo remains a possibility,” Duane Parnham, Giyani executive chairman said. Trading in Giyani shares will resume today.
The group said in addition to its working capital requirement, it needed to secure sufficient funding for its existing commitments and exploration costs.
“Management plans to secure the necessary financing through a combination of the exercise of existing warrants for the purchase of common shares, the issue of new equity instruments and the entering into joint venture arrangements. Nevertheless there is no assurance that these initiatives will be successful,” Giyani said.
At its South African operations, the company’s main project is a joint operation with the Rock Island Project which comprises two prospecting rights across four properties located in Giyani in Limpopo.
The Rock Island’s strategy is to develop the Giyani Gold exploration projects in the Giyani region through conducting effective historical data, the group said.
Subsequent drilling has confirmed that gold mineralisation remained close to gold mines in the area that had been closed. “Furthermore, the drilling has led to discoveries of new gold-bearing structures on the properties that were never before identified.”
Giyani is looking to buy prospecting rights for R1 million from Sephaku Gold Exploration, the holder of the rights located in the Giyani greenstone belt.
It said the transaction will be structured as an outright purchase of the prospecting rights from Sephaku in which the company will have 100 percent interest in the Khavagari and Siyandani projects currently held by Sephaku.
