PriceSensitive

Pursuit Minerals tumbles 31 per cent after reporting $600K a year cost-cutting scheme

Finance
ASX:PUR      MCAP $14.72M
26 June 2019 23:30 (AEST)

Image Sourced ShutterStock

Pursuit Minerals estimate to cut costs by $150,000 per quarter according to its latest cost reduction program.

The cost reduction plan comes as the company prepare to brace until favourable market conditions return.

All non essential exploration will halt, however, saved finances will be spent on developments at the company’s Scandinavian vanadium projects.

Pursuit has operations in Finland and Sweden and propose vanadium will play an integral role in future energy storage solutions.

Non-Executive Directors of Pursuit, Peter Wall and Matt O’Kane will take a reduction to their annual director fees, from $60,000 to $36,000.

According to Pursuit, a number of redundancies will be made throughout the company.

Additionally, an effort will be made to reduce office occupancy costs and the termination of contracts will be made for all non-essential services.

As it stands, the company won’t progress with plans to become dually listed. Earlier this month Pursuit proposed becoming listed on the London Stock Exchange.

Managing Director of Pursuit Jeremy Read will be stepping down from his position, however, may continue to provide consultancy services. The company is looking to replace Jeremy’s position.

Discusssions are in continuation regarding securing partners who can assist with the technical and financial next stage development at the Scandinavian vanadium projects.

Joint ventures and acquisitions are also in consideration in a bid to get involved with other resource projects.

Related News