Despite a low cash balance, Perth-based 3D Resources says it has sufficient funds to meet its obligations as its managing director steps down and the company suspends all exploration activity.
Despite a low cash balance, Perth-based 3D Resources says it has sufficient funds to meet its obligations as its managing director steps down and the company suspends all exploration activity.
The company today completed a $78,000 capital raising through the issue of 6 million shares priced at 1.3 cents, and plans to raise a further $200,000.
Cash at the close of business today was $257,713, 3D said.
"Given significant exploration expenditure over the last year, the Board believes it currently has sufficient funds on hand to meet all of its obligated expenditure," 3D said.
"The Company remains solvent."
Meantime the company has appointed chairman Ian Richer as acting executive chairman after it terminated the executive services agreement of managing director Craig Rugless.
In conjunction with the board shake-up, the company is also reviewing its exploration activities with work suspended until the review is completed.
"It is anticipated that resumption of exploration activity will, in the short term, remain restricted to compliance with statutory and contractual obligations with minimal discretionary spending," 3D said.
Shares in 3D closed unchanged at 1.6c today.
The announcement is below:
The Board of 3D Resources Limited advises that Dr Rugless' position as an executive director under his executive services agreement has been terminated, effective immediately.
As an interim measure, the Board has appointed Mr Ian Richer, the Chairman of the Board, as Acting Executive Chairman.
As previously advised, a number of new appointments were recently made to the Board. The Board, as newly constituted, has commenced an exhaustive review of the Company's exploration activities. Specifically the Board wishes to ensure ongoing exploration activities give the appropriate emphasis to preserving shareholder value as the predominant strategy. Pending completion of the review all field exploration activity has been suspended.
The Board is mindful that the current difficulties being encountered in financial markets be considered. Preservation of existing cash reserves is a priority until conditions for capital raising in equity markets have improved. It is anticipated that resumption of exploration activity will, in the short term, remain restricted to compliance with statutory and contractual obligations with minimal discretionary expenditure. The Board views such an approach as prudent financial management.
The Company remains solvent. A placement of 6 million shares at 1.3 cents was completed today to raise $78,000. The Board has granted a mandate to its brokers to complete a further capital raising of up to $200,000 upon the terms approved by shareholders at the last AGM. Cash at bank at close of business today was $252,713. Given significant exploration expenditure over the last year, the Board believes it currently has sufficient funds on hand to meet all of its obligated expenditure.
