Minera seeks funds to stay afloat

South American-focused miner Minera Gold says it desperately needs a capital injection so it can remain a viable company.

In a statement today, the Perth-based company said it was considering a number of potential funding offers, one of which could possibly evolve into a takeover offer, however without additional capital it would not be able to move ahead with any proposal.

“As all proposals are subject to many conditions, which include various forms of capital reconstruction, the board has not been in a position to accept any offers in a timely manner and in their current form,” the company said.

“Absent an injection of cash, the board will need to consider the ongoing viability of Minera over the course of this week.”

In its current cash position, Minera said, it would be risking insolvency if it progressed any proposal for bridging finance or potential acquisition.

Chairman Ismael Benavides said the board was intent on reaching an outcome, but would need the support of all stakeholders and access to additional capital in the very near term.

Minera holds ownership of a number of mining tenements in Peru and Brazil, including the Torrecillas project, which hosts several operating gold mines.

Minera shares have been suspended from trade since August 17, when they closed at 0.1 cent each.