NEW YORK Woulfe Mining
Corp. is aiming to reduce costs after a companywide review
revealed liquidity issues and the ability of the company and
its subsidiaries to meet various payables beyond the next few
The Vancouver, British
Columbia-based company initiated the review following the
resignation of president and chief executive officer Brian
Wesson and vice president of business administration Amelia
Wesson in February (
amm.com, Feb. 27). Hubert Marleau was subsequently
appointed interim chief executive officer (
amm.com, March 13).
"The board and interim chief
executive officer recognize the seriousness of these issues,
including the potential ability to advance its key Sangdong
tungsten project in South Korea in the manner and timing
anticipated in earlier corporate communications," the company
said. The review of technical aspects of the Sangdong project
also identified "considerable additional test work necessary to
bring the project to commercial preparedness," which will
require additional funding to complete.
The Sangdong tungsten and
molybdenum project had been forecast to start production by the
fourth quarter of 2013.
The company has now initiated an
internal review "to further preserve cash, reduce costs and
enhance corporate efficiencies."
"In addition, the company
continues negotiations with various parties to provide a
short-term financing solution to meet its obligations and to
provide funds to advance the companys flagship Sangdong
tungsten project, although there is no guarantee that such
financing may be available," the company said.
Woulfe also is continuing
discussions with Gouda, Netherlands-based International
Metalworking Cos. BV in order to complete the strategic
transactions announced last year (
amm.com, Feb. 29, 2012).