Aim-listed Weatherly International has requested a suspension in the trading of its shares, effective Friday, owing to the uncertain position of its Namibia-based Tschudi mine, as a result of significant water ingress.
The Tschudi openpit mine had recently experienced a rapid increase in groundwater inflow rates.
As a result, pumps and pipes within the pit have been moved, on-site standby pumping equipment and pipelines have been installed and additional pumps have also been mobilised to the site.
While water levels have been stabilised, it is not currently possible to assess the length of time required before full mining operations can be recommenced, nor can the full financial impact be assessed.
“Because of this material uncertainty, Orion Mine Finance has confirmed that it is unlikely to permit further drawdowns under the existing uncommitted loan facility with Orion,” the company said in a statement on Friday.