Noventa Sinks Over 50% After Cost Overruns Force 'Urgent' Fund-Raising Need

Noventa (NTA.TO) is down more than 50% today, falling $1.44 to $1.20 a share after saying that costs to repair and bring a new processing plant at the Marropino tantalum mine in Mozambique to full production could exceed available cash reserves.

In a statement, Noventa said it is "increasingly apparent" that the spending on the new plant will be significantly higher than originally anticipated. It currently has about $17.6 million in cash on hand, "substantially less" than what's needed to ramp up the project and prompting "an urgent fund raising requirement."

The company did not define how more is needed but said board member are now consulting with advisors to determine how much and how the new capital can be raised.

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