TORONTO (miningweekly.com) – Russian Federation-focused junior gold miner White Tiger Gold on Thursday slashed the 2013 gold production target from its Savkino mine by about 30 000 oz to only 18 000 oz, owing to uncertainties over funding, which was necessary to expand capacity.

White Tiger, under the leadership of newly appointed CEO Sergey Yanchukov, said the previous production target of 48 000 oz was based on the company's planned expansion of the Savkino mine for the current production season, which runs from April to October, and the expansion of the mine would be delayed until the company could secure the required funding.

However, owing to the seasonal production period, the earliest point at which production from the Savkino mine expansion could be achieved was in 2014.

The company also reduced its targeted medium-term production from 50 000 oz of gold a year to 42 000 oz of gold a year. This followed White Tiger at the end of March slashing its medium-term production target from 130 000 oz of gold a year to 50 000 oz of gold a year.

Continued financial uncertainty was delaying the company’s ability to expand production beyond current levels, and it estimated it would need about $55-million in additional funding to get to a position to meet the revised production target.

The company on Thursday said the production adjustment was necessary as a result of the significant adverse impact caused by the financial uncertainty arising from the company's ongoing discussions with VTB Capital with regard to a $150-million senior secured term loan facility entered into between the company's wholly owned subsidiary Diascia Investments and VTB Capital on February 2, 2012, which was amended and restated on March 7, and the company's inability to secure funding from alternative sources.

White Tiger said it was evaluating its other projects, but the decisions on the timing of the development of those projects would only be made once the company had clarified its funding strategy.

The company’s TSX-listed stock closed at C$0.35 Canadian cents apiece on Thursday, having declined in value by 90% in the last year.