Delrand to seek more funds for exploration

DIAMOND exploration company Delrand intended to raise more funds to continue with its excavation activities in the Democratic Republic of Congo, it said at an analysts’ presentation yesterday, following Monday’s release of its interim results for the six months ended June.

Delrand’s results included an emphasis of matter from its auditors, warning the company’s ability to continue operations in the normal course of business was dependent on several factors, including its ability to secure additional funding.

Delrand explores for diamonds in Congo, and also has a 25% interest in a iron ore exploration project in the country that is operated by Rio Tinto Mineral Development, a subsidiary of the world’s biggest resources miner, Rio Tinto Group.

Its exploration programmes are focused on the Coexco and Bomili exploration permit areas in the Bafwasende region.

The company said it had also progressed with two separate agreements with third parties to start detailed exploration programmes over the Caspian exploration permit areas and other properties in the Tshikapa area in southern Congo.

“A detailed follow-up sampling programme over the Coexco and Bomili exploration permit areas in the Bafwasende region … commenced in July 2012 based on results received during the second quarter,” the company said.

For the six months ended in June, the company reported a net loss of $239,429, compared with a net loss of $123,314 last year. The net asset value of the company was $4.7m.

Delrand management has been exploring options for additional funding, including equity financing and strategic partnerships.

The company has had cash of $440,655 and a working capital deficit of $421,063, compared with cash of $88,068 and a working capital deficit of $533,191 as at the end of December last year.