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 months.
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).