Mining investor West African Minerals Corporation (WAMC) fell further into the red in the first half of the year but is putting its faith in iron ore exploration in its chosen region.
The firm posted a net loss for the six months to the end of September of £1.28m, compared to a loss if £896,884 the year before.
It also said operating expenses for the period had come in above budget at £1,873,497 due to increased professional fees from its proposed acquisition of Ferrum Resources.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Equity shareholder funds fell 7.8% to £9,190,332 compared with the end of March.
The company said it intended to acquire the entire issued and to be issued share capital of Ferrum, a private company focused on early stage iron ore exploration projects in Africa.
Stephen Dattels, executive co-chairman of WAMC, said West Africa was fast emerging as the next significant iron ore province.
"We are excited by the potential exploration and development opportunities offered by the licences held by Ferrum," he said.
"The proximity of Ferrum's assets to advanced iron ore projects makes them well positioned to contain mineralisation, as well as benefit from the infrastructure being developed in the region."
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
