Ovoca Gold continues search for investor in Stakhanovsky

Ovoca Gold is continuing to search for an investor for its Stakhanovsky project amid ongoing litigation to recover its outstanding loan to bankrupt Russian mining outfit Taymura.

In its interim financial report, the exploration and mine development company said it secured payment of €0.5m during the period relating to the sale of mining equipment, while it continued its search for an investor.

During the period, it also received dividend income of €0.3m from its holding of Polymetal International shares.

Nevertheless, the company fell into a total comprehensive loss for the first six months of the year of €1.2m, versus a profit of £6.4m in the same period of 2016.

As at 30 June 2017, the company reported that cash and cash equivalents and available for sale financial assets stood at €21.4m.

Cash and cash equivalents at period end were at €6.39m, down from €7.51m at the conclusion of the previous year.

The company also said it remained "very active" as regards litigation to recover its outstanding loan to Taymura, which was declared bankrupt by a Russian court in February 2016.

Ovoca said it was continuing to pursue its legal options in order to protect its interests in the bankruptcy procedure, despite attempts by some of Taymura's beneficiaries to remove it from the register of creditors, which had led to delays in the bankruptcy procedures.