Wongai project on ice because of Bounty financing difficulties

THE directors of Bounty Mining cannot be certain that sufficient capital will be raised to fund the company’s existing commitments or the development of the Wongai project in North Queensland, it revealed in its latest quarterly report.
Wongai project on ice because of Bounty financing difficulties Wongai project on ice because of Bounty financing difficulties Wongai project on ice because of Bounty financing difficulties Wongai project on ice because of Bounty financing difficulties Wongai project on ice because of Bounty financing difficulties

 

Lou Caruana

During the 2015 financial year borrowed $17,000 from a company associated with its chairman and CEO Gary Cochrane.

This was short-term working capital loan unconnected to the company’s major loan facility. This loan was partially repaid during the September 2015 quarter.

“While the company remains in active discussion with a number of interested parties regarding other financing options, no funding commitments have been received at the time of release of this document,” it said.

In July 2015 the company’s continuous miner and its spare parts were sold to a private purchaser for $0.25m and $0.05m respectively, which the board said it considers to be a fair value in the current market.

This represented a significant variance to the written down value. A company vehicle was also sold.

“Due to the difficulty in raising capital, the company was unable to progress the Wongai project during the period,” it said.

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