- Greenvale Energy (GRV) has dropped over 15 per cent after releasing its December quarterly report
- It sent an application to the Queensland Department of Natural Resources, Mines and Energy to defer the financial year 2020 expenditure commitments
- The company has decided to lodge the application as it is awaiting test results of its tenements
- These results will be important in determining Greenvale’s next phase of work for the Alpha Project
- On market close, the company is down 15.8 per cent and is selling shares at 1.6¢ apiece
Greenvale Energy (GRV) has dropped over 15 per cent after releasing its December quarterly report.
Alpha Project
During the quarter, no activity was undertaken by the company in relation to its 99.9 per cent owned Alpha Resources project.
In September, Greenvale lodged an application to the Queensland Department of Natural Resources, Mines and Energy (DNRME) to defer the financial year 2020 expenditure commitments.
The company has decided to lodge the application as it is awaiting test results of its tenements. These results will be important to determine Greenvale’s next phase of work to be undertaken on the Alpha.
No decision has been made by DNRME, however, Greenvale said the deferral would not change the remaining total commitment.
The application was supported by the company’s technical consultant SRK Consulting work program.
The company has issued documentation to the current owner Aurum Exploration of the Gold Basin to finalise the interest. It is currently waiting for Aurum’s response.
“Ultimately, the Board wants to ensure that the amount spent on the Alpha Project creates value for shareholders,” the company said.
Gold Basin Project
The Gold Basin Project is located in the U.S. state of Arizona.
Last year, the company completed its 50.01 per cent investment in a private company called Greenvale Gold Basin, New England Metals owns the other 49.99 per cent.
Maiden Resource for the Gold Basin of a combined JORC Compliant Inferred Resource for the Cyclopic and Stealth deposits is 299,800 ounces with an average grade of 1.12 g/t gold based on a cut-off of 0.5 grams of gold per tonne.
Placement
Greenvale is seeking to raise up to $300,000 to allow the company to continue to achieve its objectives. It received expressions of interest from a number of parties and an amount of $90,000 was raised.
However, due to the decline in the company’s share price, the offer was withdrawn.
After the placement, the company will proceed with a capital raising for all shareholders to participate in.
On market close, the company is down 15.8 per cent and is selling shares at 1.6¢ apiece.