Stonegate Agricom Ltd. announced that it has temporarily suspended permitting activities at its Paris Hills Phosphate Project in Idaho due to financial constraints.
In order to finalize the groundwater model for permitting applications, the company engaged third-party consultants. Currently there is a wide range of estimates of expected groundwater flow rates into the planned underground mining area. As a consequence, the Company will need to undertake further testing and analysis which may include additional engineering work. Given its current financial position, the company cannot undertake additional work at this time. The company no longer expects to submit the groundwater model and report in Q1 2015 as planned. The company is reviewing its options with respect to its next steps.
As of Dec. 31, 2014, cash and cash equivalents totalled approximately $1.4 million and working capital totalled $1.0 million. The company is exploring alternatives to raise additional funds by the beginning of Q2 2015 to cover working capital and fund further work on the project.