Prima Colombia Hardwood Inc. (TSX-V:PCT) has announced it has not received the cutting permits from the Colombian government it expected would be issued by the end of the year.
The company is still working with Colombia’s Ministry of Environment and says that, although the permit process is progressing, Prima is unable to estimate when the permits will be issued.
Prima has not been advised of any issues that would affect the application.
The uncertainty over the permits and the delayed start-up of operations has led to plans to reduce the company’s monthly cash requirements to approximately $200,000 per month.
Prima also intends to seek bridge loans secured against its equipment and sell some of its assets to fund the delay and discharge liabilities.
Canadian-based Prima Columbia Hardwood Inc. operates in the Republic of Colombia near Bahia Solano.
Prima was not available for comment as of press time.
At press time, Prima’s share value had dropped by20% to $0.04.
Emma Crawford