Glencar cuts its losses to £199,322

EXPLORATION company Glencar, has reduced its losses before tax from £207,785 to £199,322 in the 12 months to the end of December 1995.

The losses, which reflect exceptional items of £178,514, include a £100,000 write down of Glencar's interest in Andaman Resources. In a statement yesterday, the chairman, Mr Hugh McCullough, said no further writedowns of this shareholding were expected.

Mr McCullough said the latest figures showed that Glencar was now in a "strong financial position" and had no debts. He said that, during the year, the company had raised £2.3 million after expenses through the issue of 5.75 million new shares. These funds were primarily used to finance an increased equity interest in its Wassa gold project in Ghana from 28.8 per cent to 45.2 per cent, according to Mr McCullough.

Glencar was "very optimistic" about the future of the Wassa project, he said.

A feasibility study based on the Ghanaian mining operation is due to be completed by the end of the year, with production work expected to start in 1997. The property is now estimated to have gold resources of more than 1.6 million ounces, according to Mr McCullough.

Over the past year, the company also concluded an earn in agreement with Cyprus Amax in relation to its 50 per cent interest in the Kanyankaw property in Ghana.

Glencar is also about to move into Uganda and is close to purchasing a small gold project there. This deal, which is expected to involve a relatively small initial investment for the company, would give the group a 95 per cent interest in that property, Mr McCullough said.

In Ireland, exploration on its lead and zinc properties is proceeding at a satisfactory pace, he said.