StockMarketWire.com - The board of Copper Resources Corporation is cancelling trading on AIM because its share price "significantly undervalues the business and operations".

The board considers that the costs are now disproportionate to the benefits of that market,

The company says cash constraints have prompted it to significantly scale back the development of the Kinsenda mine on a temporary basis and put on hold the procurement of long lead items.

A loan facility provided by Metorex Limited has been increased from US$20m to $30m, primarily in order to fund the working capital needs of the company's subsidiary, Miniere de Musoshi et Kinsenda SARL.

Metorex considers it inappropriate to continue providing 100% of the funding required for the continued development of the company's projects and the board has resolved to pursue an equity capital raising which will be available to all existing shareholders.