It looked as though Cambridge Mineral Resources was finally turning the corner but it now has a new problem.
CMR has breached a prepayment funding agreement with its lender by failing to deliver enough gold by the end of 2008. The lender wants CMR to deliver its full gold requirement under the agreement of at least 13,541 ounces of gold plus costs and expenses by 6 February 2009.
This led to a 1.35p slump in the share price to 0.275p, which values CMR at £1.02m.
CMR has £102,000 of cash plus $126,000 worth of gold. That will last three weeks. CMR is trying to find alternative finance.
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