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Ragnar Metals (ASX:RAG) updates market on trading suspension
  • Ragnar Metals (RAG) has extended its suspension from trading and believes it will resume in six months time in March 2021
  • The company first suspended its shares in early August pending the release of a response to a price query
  • When Ragnar's shares were first frozen, the ASX requested that the company make a submission to demonstrate that its operations and financial position are in compliance to warrant continued trading
  • Unfortunately, the ASX today announced that it believes Ragnar does not have a sufficient level of operations or financial condition to justify its reinstatement
  • The ASX will review this again in six months time and Ragnar is considering its options to be able to satisfy the ASX
  • These options include the acquisition of additional mineral exploration assets and capital raises
  • Finally, Ragnar entered loan agreements to borrow $200,000 from three separate entities
  • Ragnar shares last traded for 1.1 cents each in a $3.447 million market cap

Ragnar Metals (RAG) has extended its suspension from trading and believes it will resume in six months time in March 2021.

The company first suspended its shares in early August pending the release of a response to a price query.

When Ragnar's shares were first frozen, the ASX requested that the company make a submission to demonstrate that it is in compliance with listing rules 12.1 and 12.2.

Rule 12.1 states that a company's operations must be sufficient to warrant the continued quotation of securities, while rule 12.2 state that a company's financial position must be sufficient to warrant continued trading.

In its June quarterly report, Ragnar revealed that it had $142,000 in total funding available, representing just under a quarter left.

The company contributed this to it being in the exploration and evaluation phase and expected to have negative operating cash flows for the time being.

Ragnar stated that it would be fine in the short-term and said that further funding had been planned for the medium-term and long-term.

Unfortunately, the ASX today announced that it believes Ragnar does not have a sufficient level of operations or financial condition to justify its reinstatement.

The ASX will review this again in six months time and Ragnar is considering its options to be able to satisfy the ASX.

These options include the acquisition of additional mineral exploration assets and capital raises.

Operations

Ragnar also announced that it is considering options to fund the next stage of development at its Granmuren project in Sweden.

Granmuren contains substantial massive and dispersed sulphides, primarily pyrrhotite, pentlandite and chalcopyrite.

Previous results have peaked at 0.81 per cent nickel and 0.70 per cent copper.

Working capital

Further, Ragnar has raised $400,000 to fund its working capital requirements.

This was done through the issue of convertible notes to the value of $200,000 to sophisticated investors, and unsecured loans from director-related entities totalling $200,000.

Loans

Finally, Ragnar entered loan agreements to borrow $200,000 from an entity controlled by Non-Executive Chairman Steve Formica, an entity controlled by Non-Executive Director Eddie King, and an unrelated party lender.

These can be drawn down until October 11, will be repayable by August 12, 2021, and carry a 10 per cent yearly interest rate.

Ragnar shares traded for 1.1 cents each in a $3.447 million market cap.


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