Zinc explorer North River Resources subsidiary's application for a mining licence for its Namibian mining project was delayed again.
North River's subsidiary NLZM is still currently waiting on the mining application for its Namib project, a restart of a high grade zinc-lead underground mine, from the Namibian Ministry of Mines and Energy, following two delays with the government not having provided any revised date or time-frame for a decision.
"The duration and outcome of these discussions remain uncertain and the final issue of the Mining Licence on commercially acceptable terms cannot be guaranteed," the company said in a statement.
NLZM submitted a proposal on April for a mining application and included reference to the Namibian government's poverty eradication aims by providing an opportunity for local ownership of the Namib project, participation by historically disadvantaged Namibians in the management of the project; and implementing a corporate social responsibility strategy. The ministry said it will respond as as soon a possible.
The AIM-listed company said it is also examining the proposed National Equitable Economic Empowerment (NEEEF) Bill, which will set out obligations for companies to provide opportunities for ownership and management participation for previously disadvantaged Namibians.
The company said the extent to which the NEEEF Bill would place additional obligations on the Namib project is unclear, and the company and Namibian mining industry as a whole will need to seek further clarity.
Furthermore, "certain obligations under the draft Bill are inconsistent with those laid down under the terms & conditions to the Notice of Preparedness to Grant," the company said.
North River also appointed human resources professional Ratonda Katjivikua and solicitor Francois du Plessis to NLZM's board, and former Namibian politician Asser Kapere as chairman.
North River chief executive James Beams, said: "I am very pleased with the new appointments to the board of NLZM. North River is at a critical juncture as we seek to advance our mining licence application and take the Namib project forward to a construction decision, and the combined skills and experience of the new board members of NLZM will greatly strengthen the leadership of the group".
Shares in North River Resources were down 16.38% to 12.12p at 0834 BST.