Chile Mining Needs to Raise More Cash
The copper miner is working to finish plants, but its accountant raised doubts about the ability to continue without the threat of liquidation
Chile Mining Technologies Inc. needs additional capital to continue operations.The copper miner, headquartered in Santiago, Chile, plans to obtain more capital through private placements and public offerings, the company says in a filing with the U.S. Securities and Exchange Commission. According to a July 15 10-K filing with the SEC, Chile Mining's accountant raised doubt about the ability to continue as a going concern, or without the threat of liquidation, because of the company's working capital deficit, losses and lack of revenue.
Chile Mining has a working capital deficit of about $5.88 million, plus net losses of $17.4 million since it was started in 2008, according to the SEC filing.
Chile Mining has already started raising capital. In May 2012, the company sold $3.5 million in 11 percent secured notes to certain investors.
The company has been using funds to construct plants.
In SEC filings, Chile Mining says the company's future depends on the extraction of copper from mineral properties. So far, the company has one operational plant, called Ana Maria, located in the Matancilla district in Chile. The company says it is 75 percent finished with a second plant, which will be called Santa Filomena, and plans to build a third plant, which is scheduled to be up and running in 2014.
The company, which has 31 full-time employees, expects to sell copper to Madeco, the largest cable producer in Chile.
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