Widespread suspends Vietnam mine development

Listed Widespread Portfolios’ largest investment, Asian Mineral Resources, has suspended the development of its Ban Phuc nickel mine in Vietnam.

Widespread invests mainly in overseas-based mining and mineral exploration companies. Managing director Chris Castle describes the company's strategy as aggressive and inherently risky.

Today he said Asian Minerals represented 42.4 percent of Widespread's total assets at Asian Minerals' market value of 34c Canadian a share.

In Canada last night Asian Minerals announced the suspension of the Ban Phuc project, in which it has a 90 percent interest, from Wednesday.

Asian Minerals said it had been unable to obtain commitments for financing to complete the project.

That was due to a combination of factors, including market conditions and uncertainties about Vietnamese government policies on nickel concentrate exports, export tariffs, royalties and taxes.

The suspension would be done in a way designed to maximise the value of spending so far, maximise cash conservation, and minimise the costs of completing the delayed project.

It would also provide Asian Minerals with a chance to resolve the various Vietnamese issues and to continue discussions with potential finance providers, including major shareholders.

Asian Minerals president Collin Ellison said the project remained "robust", lacking only financing and a resolution of the Vietnamese issues.

Widespread's shares last traded on September 15 at 30c, down from a year-high of $1 last December.

- NZPA