StockMarketWire.com - Australian sapphire producer Richland Resources said that it had decided to pursue a sale of its Capricorn mine, and had secured a further extension of its £400k and $150k secured convertible loan facility to the end of June.

The company had announced last year that it was talking to potential strategic investors to secure funding for the mine, or, alternatively, was seeking a buyer for the mine.

'The board is now focussed on pursuing the sale of all or part of Capricorn Sapphire and remains in discussions, with one party in particular, with regard to the potential sale of the entire Capricorn Sapphire project,' Richland Resources said.

'There can, however, be no guarantee that the company will be able to either secure the requisite funding to be able to re-commence operations or conclude discussions with regard to the potential disposal of Capricorn Sapphire.'

The maturity date on the loan facility had been extended from the end of May, with all other terms unchanged.

'The company is currently in discussions with the provider of the facility to potentially increase the quantum of the facility to provide additional working capital and a further announcements will be made as and when appropriate,' Richland Resource said.



Story provided by StockMarketWire.com