Junior mining stocks Crest Minerals and Avalon Minerals have announced they will not be proceeding with planned acquisitions, after failing to get the backing of investors.
Australian resource company Avalon was in negotiations with Malaysian investment firm ZJ Advisory to fund its acquisition of the Discovery Zone prospect, and to progress the company’s Viscaria Copper-Iron project in Sweden.
The announcement of the termination of the Memorandum of Understanding between the two companies brought an end to Avalon’s trading halt and the stock fell sharply in response to the news, from 3.7 cents to 2.5 cents.
Avalon has said in a statement that it will continue with other financing avenues to fund the aquisition of the Discovery Zone project and other expansions.
Prospective gold miner Crest Minerals also failed to get investor backing for its planned $6 million acquisition of Reed Resources’ Comet Vale gold project in Kalgoorlie.
Reed Resources said in a statement that despite ‘significant effort’ on Crest Mineral’s part, the company had been unable to secure the required funding for the acquisition.
Crest Minerals managing director Angus Middleton said the failure to acquire the project was disappointing but added the company had been active in its flagship Majestic North gold project in Kalgoorilie.
Reed Resources managing director Luke Tonkin said the company would now resume discussions with other interested parties regarding the Comet Vale project.