The ASX is really giving it to cash-strapped miners at the moment
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The plight of cash-strapped junior explorers is once again on show with more companies receiving queries from the Australian Securities Exchange over their gloomy bank balance.
Three more exploration stocks have received queries from the ASX over the past few days, after several companies got chucked on the grill last week.
GTI Resources (ASX:GTR) reported cash at end of June quarter of $46,000 following negative cash flows of $213,000 for the quarter. Looking ahead, the company is looking to spend $40,000.
In its response, the company said it was investigating alternative funding opportunities to provide ongoing working capital including equity raisings, short-term unsecured borrowings and joint venture opportunities.
“Short term funding requirements are being satisfied by periodic equity placements and unsecured loan advances from a director on an as required basis,” GTI said.
“The company is of the belief that it will have sufficient working capital and financial support to fund its ongoing business activities.”
In June, GTI raised $270,000 following the placement of 9 million shares at 3c per share to provide further working capital the company.
Meanwhile, West Wits Mining (ASX:WWI) has been quizzed on how it will fund its expected $250,000 spend for current quarter based on its cash position of $165,000 at end of June quarter.
The company said it had recommenced operations at the Sol Plaatje project in late June with ore being shipped for processing on July 28.
“Modelling undertaken by the company’s consultants confirm that the quantum of revenue West Wits can expect from its 60 per cent share in Sol Plaatje project will substantially exceed the ongoing operation cost requirements of the group,” West Wits said.
West Wits is also expecting a payment of between $150,000 and $200,000 from the project’s previous operating partner in the current quarter.
Gold and copper explore Alice Queen (ASX:AQX) has flagged spending of $728,000 in current quarter with cash on hand of $805,000 at end of June.
The company believes it can operate going forward as it has some 116 million listed options exercisable at 3c which are “in the money” and expiring end of the current quarter.
The company noted that since their issue, close to 8 million options have been exercised providing $235,452 in proceeds of the company.
Alice Queen expects more options to be exercised prior to the expiry date and is in advanced discussions with a Perth-based stockbroking firm for the full or partial underwriting of the exercise of the options.
If fully exercised, the options would result in receipts by the company of circa $3.5 million.
Shares in GTI closed Monday unchanged at 1.2c, West Wits closed unchanged at 2.3c while Alice Queen closed unchanged at 4.8c.