Golden Heart mine. Photo courtesy goldenbandresources.com
A La Ronge-area gold-mining company has issued a cryptic news release about its first big step in 2016.
Golden Band Resources says it is working with a financial advisor, Primary Capital Inc., “to assist in identifying and evaluating strategic proposals to restructure and finance the Company with a view to maximizing shareholder value.”
In late 2013, the company laid off 120 miners from its La Ronge-area open-pit mines and went into “care and maintenance mode.”
Right now, and for the past few years, Golden Band’s focus has been on serving its shareholders by reducing its losses.
In the 2014 fiscal year it lost more than $107 million.
In a recent interview with MBC, CEO Paul Saxton stated the company needs a profitable plan if it’s to start operation again. He noted that doesn’t seem to be in the cards right now, especially considering the current economic downturn for investment in the mining sector.
This week’s news release from Golden Band says “there are no assurances that any transactions will result from these matters.”
It’s not clear what kind of transaction they’re referring to.
CEO Paul Saxton wasn’t available for comment on Friday.