The company said it is looking at alternatives to remedy the situation.
"This lack of working capital and the operating challenges have resulted in a slower than expected ramp up to commercial production as we have not been able to adequately finance the ramp-up process and building up a gold mine takes time and money," said President and CEO Michael Hepworth in a statement. "The company is now examining all strategic alternatives to remedy this situation."
READ: Nordic Gold expects to produce 67,000 ounces this year, as the Laiva mine in Finland comes into its own
The company said in a statement it began operations with a working capital deficit and that has continued, despite significant effort being made to find additional lenders and investors. According to the company, these have been unsuccessful due to market conditions and the structure of the company's financing.
"Until very recently, the company had hoped that its current financier and lender would provide additional financing, but this has not materialized due in part to operational issues and production shortfalls," said the company in a release.
The company said it is working with its contractor to remedy a number of operational issues. It has also started a cutback on the north pit to provide access to additional high-grade ore bodies.
"The cutbacks will widen the pit and provide access to additional mineable ore," said the company.
To date, the Laiva Mine has produced a total of 6,096 ounces of gold and has received US$7.76 million in revenue from gold sales.
According to the company, it expects to produce an additional 1217 ounces of gold by the end of February.
Shares of Nordic Gold were halted Wednesday.
Contact Katie Lewis at [email protected]
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