Low manganese prices slow Matthews Ridge project
REUNION Gold, the Canadian company which has been prospecting for manganese at Matthews Ridge in Region 1 (Barima/Waini), has said that low prices for manganese on the world market had led to a slowdown of its activities in Guyana. The company’s Matthews Ridge manganese project is currently in the care-and-maintenance phase, while it is evaluating different financing options, including the sale of certain assets, joint ventureship, or other arrangements, the company said in a media release.
It will, however, seek to obtain an extension of its prospecting licences at Matthews Ridge.
According to the release, the economic slowdown in Asia and other parts of the world had led to a significant drop in the demand for steel and related products, including manganese.
This slowdown and other economic factors have had a direct impact on the market price of manganese; and combined with a depressed equity market for junior mining companies, it has become difficult to finance the development of manganese projects, the release said.
Reunion Gold Corporation had up to mid last year assembled a large, strategic land position to conduct exploration and development activities for manganese in the North West District .
Manganese is said to be the fourth largest metal consumed in the world, behind iron, aluminium and copper. It is a key component in steel and iron production with no viable substitute.
The company announced that it has filed its audited consolidated financial statements and management’s discussion and analysis (MD&A) for the year ended March 31, 2015.
The company also announced that it will hold its annual general and special meeting of shareholders on September 30, 2015. The record date for shareholders entitled to vote at the AGM is August 14, 2015.
With respect to the Matthews Ridge project, Reunion Gold said that the company’s priorities for the current financial year is to complete financing to settle its working capital deficit, fund ongoing obligations and to secure an extension of its prospecting licences in the area, the release concluded.
