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MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  ZincOx Resources plc    ZOX   GB0031124638

ZINCOX RESOURCES PLC

(ZOX)
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News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news

ZincOx Resources to Raise Money to Cope With Low Prices, Shares Plunge

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11/25/2015 | 12:15pm EDT

By Rory Gallivan

LONDON--Shares in ZincOx Resources PLC (>> ZincOx Resources plc) fell nearly 40% Wednesday after the zinc recycler said it planned to raise at least $6.5 million to help it cope with low prices for the metal.

"The decline in the zinc price has had a material adverse impact on the cash position of the company and absent a new injection of capital, the company will face a shortfall in its cash position by the end of 2015," ZincOx said.

The company, which operates a plant in Korea that extracts zinc from waste generated steel scrap recycling, warned in September that if the zinc price didn't recover--then trading at around $1,660 a ton--it might need to review financing options. The price recently fell as low as $1,487 a ton, the company said Wednesday.

ZincOx said if it fails to raise sufficient money it will have to transfer a 90% stake in its plant to its lender, zinc smelting company Korea Zinc.

Shares at 1621 GMT, were down 2 pence, or 37.7%, at 4 pence valuing the company at 7.8 million pounds ($11.8 million).

Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter: @RoryGallivan

Stocks mentioned in the article : ZincOx Resources plc
Stocks mentioned in the article
ChangeLast1st jan.
KOREA ZINC COMPANY, LTD. 1.17% 390500 End-of-day quote.-0.89%
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Managers
NameTitle
Andrew Charles Woollett Chief Executive Officer & Executive Director
Rodney Graham Beddows Non-Executive Chairman
Donald Alexander Robert McAlister Executive Director & Finance Director
Gautam Shashichandra Dalal Independent Non-Executive Director