China Africa Resources in talks over possible restructuring

China Africa Resources noted the jump in its share price on Wednesday and confirmed that it is in the final stages of negotiating a transaction that could lead to the restructuring of the group.

In addition, the company said it is planning a share placement at a price “materially lower than the current market price”.

The AIM-listed miner said it will provide further updates as and when possible.

In its results interim results back in July, the company said it made a loss of $2m. It said it had implemented a number of cost-cutting measures post year-end that would significantly reduce its ongoing costs.

“However in order to continue to meet the group's working capital needs and development plans some additional funding will be required either through equity raisings or other financial arrangements of which there can be no certainty," the company said at the time.

At 1025 GMT, China Africa shares were up 55% to 10.05p.