North River Resources Nomad walks out

North River Resources took a tumble after its 'nominated advisor' announced it was resigning, putting the firm's listing on AIM under threat.

The resource company, which is focused on Southern Africa, said Strand Hanson would resign as its Nominated Adviser, effective from close of business on December 4th.

Nominated advisors - or Nomads - act as gatekeepers, advisers and regulators of AIM companies, and are obligatory to have if firm's want to be listed on the Index.

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North River said it was in discussions with a replacement Nomad, but there was no guarantee that a replacement would be found before the end of December 4th.

"In accordance with AIM Rule One, if a company ceases to have a Nominated Adviser, trading in the company's shares will be suspended," the firm warned.

"If within one month of that suspension a company has failed to appoint a replacement Nominated Adviser, the company's admission to AIM will be cancelled."

Shares fell 8.3% by 9:30 following the the news.