Cash-strapped Frontier changes focus after ditching ‘ambitious’ plans
Link copied to
PNG-focused Frontier Resources has changed its strategy for 2017 after declaring it lacked the money to roll out its “ambitious” plans.
Perth-based Frontier (ASX:FNT) fell 6 per cent to 1.5c Tuesday lunchtime trade after director Peter Swiridiuk declared the company’s finances weren’t up to shape to achieve its strategy.
At the end of June, the company had only $42,000 cash — but has since raised almost $406,000.
Mr Swiridiuk wants Frontier to focus on its Bulago and Muller Fold Belt exploration licences ahead of its New Britain projects.
Exploration of Muller should be the short-term priority with a focus on securing a potential joint venture with a major player, he said.
Earlier this month, Frontier flagged talks with Anglo American over a potential joint venture covering Bulgo and Muller it applied for a licence covering a 2400 sq km area surrounding Bulago.
Mr Swiridiuk also noted the importance of the Tolukuma region and said it should vigorously pursue a licence in the area. A court hearing over Frontier’s application will be heard tomorrow.
Applications in the D’Enrecasteaux Islands should also be pursued, he said.
Court hearings into the applications are expected by early November.
However, Mr Swiridiuk said focus on the New Britain project should be scaled back. An option on Ala River should be terminated as the company had no budget to pay the $80,000 cost. An Andewa licence should also be terminated.
“This is a logical and fiscally prudent consolidation strategy that will be implemented immediately,” Frontier’s chairman and managing director Peter McNeil said.
Frontier needs further funding but has not disclosed how much or how it will be raised.
Frontier has a market cap of about $1.6 million.