West African Minerals scales back to conserve cash

West African Minerals (LON:WAFM) has undertaken a major retrenchment of its operations in Cameroon and Sierra Leone to conserve cash.

The iron ore explorer has slashed its planned operational expenditure in the current year, with the remaining projects to be outsourced to a company run by existing management.

The company’s main targets at Binga, Djadom and Sanaga, and the exploration targets identified at Lélé and Djadom North are all being retained but the interests elsewhere, including in Sierra Leone, are being handed back to save money.

As a result, technical and operating expenses will fall to US$350,000 from US$2.92mln while the land area WAFM has rights in Cameroon reduces to 332 sq km from 4,200 sq km.

Management of the ongoing projects will now be handled by Plinian Capital at an annual cost of US$160,000.

Plinian’s fees will include the costs of president Brad Mills, managing director Anton Mauve and the exploration director. Mills and Mauve are both shareholders in Plinian.

Mills said: "The company is very pleased with the technical work it completed in 2014, and in particular, the Maiden Inferred Mineral Resource Estimate for its Sanaga project which was completed on time and on budget.

“The directors are however mindful of current market conditions, and the importance at this time of preserving cash.

“Our current cash position is approximately US$7mln and the 2015 Budget seeks to maintain this cash position by reducing expenses at the operational and corporate level to the absolute minimum.”