Charter focus on mine bid

GOLD Coast-based investment and mining hopeful Charter Pacific has posted a first-half loss of $1.14 million as plunging iron ore and gold prices frustrate the would-be mining minnow’s attempts to get a Mauritanian iron ore project off the ground.

The listed Surfers Paradisebased company, which has been clinging to life while it attempts to obtain funding for the ambitious Mauritanian project, said its half-year loss of $1.14 million compared with a $1.64 million loss for 1H13.

It said its sole focus in the six months to December 31 had been on securing the Legleitat iron ore mining licence from the Mauritanian Government.

The current accounts show that among Charter’s non-current assets was exploration and evaluation expenditure of $11.27 million, $9 million more than the previous six months.

In order to keep its mining hopes afloat, the company said its executive chairman, managing director and major shareholder Kevin Dart, and company secretary, Steven Cole, had agreed to take a 40 per cent pay cut, but declined to detail in the first-half results their remuneration packages.

However, the 2013-14 annual report shows that Mr Dart’s total pay package was $964,144, including a salary and fees of $546,467. Payment of 40 per cent of the package was deferred.

The company said its directors and senior executives also were continuing to significantly defer payment of their fees and salaries “to ensure the company remains well positioned to unlock the value within its investments”.

Charter also did not reveal the amount of fees and salaries the executives were deferring.

In October, the company said it had secured a financial lifeline of $US3 million in funding for its Mauritanian iron ore project in return for an equity stake.

Under the deal, Mauritania’s WAFA Mining will receive a 10 per cent stake in Charter’s in-country partner and shareholder, Legleitat Iron Mauritanie, increasing its stake to 20 per cent.

The Mauritanian Government also holds 20 per cent of the company, leaving Charter Pacific’s stake at 60 per cent.

Charter said its efforts to secure development funding and/or joint venture partners for the mine had been “frustrated” by the “volatile and continuing weakness in iron ore and gold/copper prices during the last 12 months”.

“The company is exploring every avenue to maximise and extract value for its resources investments in Mauritania,” it said.

Charter’s shares closed unchanged at 2.4¢.