Irish exploration firm Glencar announced the sale of its gold-mining operation in Ghana as a going concern and the resignation of chairman Mr Richard Hooper.
The company blamed the continued weakness in the price of gold and higher-than-expected operating costs at the loss-making Wassa mine in Ghana for the decision.
In June last year, Glencar raised $5.35 million through a rights issue to fund exploration of the Wassa prospect. The company said today it would not be able to meet its debt repayment.
Even with rescheduling, the company would have been unable to meet its debt repayments over the life of the project without a major increase in gold prices, a statement from the company said today.
The statement also had news of Mr Hooper’s resignation. "While I have found the experience very worthwhile, I have a great regret that rewards for the shareholders have not been obtained," Mr Hooper said.
He will step down after the group’s AGM.