Gold explorer Resource Base told by the ASX to prove it has a business
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Gold minnow Resource Base has been suspended from trading indefinitely by the ASX.
Late Monday afternoon, the ASX issued an announcement saying Resource Base (ASX:RBX) would be “suspended from quotation immediately in accordance with listing rule 17.3”.
The reason the bourse gave was that Resource Base’s “operations are not adequate to warrant the continued quotation of its securities and therefore it is in breach of listing rule 12.1”.
The ASX said the suspension will continue until the company is able to prove it is in compliance with that particular listing rule.
In the past year, Resource Base’s share price has traded between 2c and 4c. It was suspended at 3.4c.
Resource Base had been assessing its options for using the existing processing plant at the Broula King project in New South Wales to process other people’s gold.
The company was also considering other options to capitalise on its already permitted project.
“A number of opportunities to utilise the existing plant and permitted status of the Broula King have been identified and assessed, and discussions are well advanced, with preliminary documentation exchanged,” Resource Base said in its most recent quarterly.
The company said it expected that one, or both, of these opportunities would proceed to signed agreements in the near term.
Resource Base also said it believed it would be able to demonstrate to the ASX that it was compliant with listing rule 12.1 before the November 19 deadline.
The company had just $62,000 in cash and $900,000 in debt at the end of the September quarter, and expected to spend $150,000 on admin and corporate costs alone in the December quarter.
Resource Base has been contacted for comment.