In the last quarterly report they indicated they would be looking to sell assets, and HGO was mentioned as one of them. They bought an deposit (Baloo I think) to access some additional ore for this operation, but there has been a hold up in getting mining approvals. HGO is struggling because it can not get sufficient higher grade ore - probably because WGX had not invested in any meaningful exploration to find it.
This is probably a necessary step to stay alive while they continue to bleed on their three other mining operations via a large capex spend for much of this calendar year. Its a case of burning the furniture to stay warm during the Siberian winter frosts. I just hope there is a happy ending and they do not have to also burn the wood making up the hut in which WGX is housed to try to stay alive, or us shareholders will become frozen mummies buried in the Siberian tundra.
loki
WGX Price at posting:
$1.20 Sentiment: None Disclosure: Held
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