Mining explorer Solomon Gold (SOLG.L: Quote) said it was confident of being able to secure further financing for its exploration projects as it reported a narrowing in first half operating losses.
The group, which is searching for gold deposits under an agreement with U.S.-based miner Newmont (NEM.N: Quote), said on Wednesday its operating losses for the six-month period ending Dec. 31 totalled 478,000 Australian dollars ($309,800) compared with a 798,000 loss the previous year.
Solomon said it had been forced to review its operations and budgets with a view to conserving cash in common with other exploration companies.
Crisis in the credit markets has spilled over into the equity markets to the extent that raising equity funds for companies at our stage of development has become very difficult, the group said in its half-yearly statement.
Solomon Gold said it is in the process of securing additional funds and finalising joint venture arrangements and is confident of successfully concluding the deals.
In Nov. 2008 Solomon raised 350,000 pounds through a rights issue of more than 11 million shares, allowing it proceed with its approved annual spending plan.
Shares in Solomon gained 4.8 percent to 8.625 pence at 0930 GMT on Wednesday after closing at 7.87 pence on Tuesday.
(Reporting by Nick Vinocur; Editing by Matt Scuffham)
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