apex boss defends troubled gold mine

Word is getting out there ...

http://au.news.yahoo.com/thewest/business/a/-/wa/5908116/apex-boss-defends-troubled-gold-mine/

Apex Minerals boss Mark Ashley says he remains confident of making WA's historic Wiluna mine work after shares in the embattled gold player fell a further 3 per cent yesterday.

Apex shares tumbled 0.3¢ to 8.5¢, cementing a 45 per cent slide in the past month amid speculation the group will need a major cash injection to keep its head above water.

The latest share price slide values the group around $51 million - just $21 million more than it paid to buy Wiluna from Oxiana Resources in 2007.

Mr Ashley said Apex was reviewing Wiluna as a result of recent operational problems, which saw it last week push back its second-stage production ramp-up by at least four months.

"Apex has experienced some operational difficulties, about which we have advised the market," Mr Ashley said. "We are still mining and generating cash flow and we retain total confidence in the long-term viability of the Wiluna project and the immense opportunities offered by our satellite deposits.

"The company is now considering the best method for funding its future capital investment."

Apex has already flagged plans to raise cash to mine additional ore- bodies to provide extra mill feed.

However, market watchers suggested Apex was likely to have to sell equity in the company to raise the cash it needs, given it has already tapped shareholders twice this year.

There is also speculation Apex may be eyeing a broader recapitalisation that could see it bring in a new cornerstone investor.

Separately, Apex's eastern goldfields neighbour Navigator Resources is expected to update investors as early as today on its plans to fund the proposed acquisition of the Bronzewing gold mine.