News

January 30, 2008

Cambridge Minerals Borrows Crucial Funds To Get Into Production

By Charles Wyatt

Despite what they say about the trading weaknesses of AIM stocks, a quick look at the chart of the Cambridge Minerals share price shows that it has reflected the company’s fortunes faithfully over the last few months. Back in June the company announced that it was going ahead with development of the Quintana mine in Colombia despite the fact that it did not have sufficient cash. To compound its problems there seemed to have been a falling out between managing director Colin Andrew and then company broker Insinger de Beaufort. Reading between the lines it would appear that Insinger did not agree with the plan to move to production from a resource still at the ‘inferred’ stage. When you are strapped for cash, however, and see a chance to start generating some, there is little time for polite debate.

That is clearly Colin’s view and he did not get knocked off his perch by the lack of a broker as Hichens Harrison soon slipped into position. However the need for money and doubts about a broker started the shares on a slippery slope and they more than halved.  In October the company raised £1 million and gave an optimistic update on the Colombian projects, but neither of these developments had much impact. Now Colin Andrew has found a way to raise enough money to bring the first three...