Watermark hit by decision delay

Alternative Investment Market-quoted Watermark Global has been hit by the failure of the South African Government to decide how it wants to tackle its acid mine drainage problem. Watermark, which owns a potential treatment process, has raised more cash to help tide it over until the Government makes a decision.


Watermark’s technology uses an alkaline barium and calcium process, developed by South Africa’s Council for Scientific and Industrial Research, which can produce industrial standard water and drinking water.

The Environmental Impact Assessment (EIA) for Watermark’s project is progressing, but funding decisions will delay the project. The South African Government, while it realises that there is a need to cure the acid mine drainage problem, has still to decide its preferred Public Private Partnership arrangements with the mining companies.

The latest share placing raised £705,000 at 0.275p a share, the same price at which Watermark raised £630,000 at the end of May. The cash will provide working capital for the company while the South African Government makes a decision on whether to go ahead with Watermark’s project. Costs are being cut and payments to creditors delayed, which means that the cash should last for approximately six months.  

An annual general meeting held on 30 June approved the new issue of shares.

 

Market: AIM
Symbol: WET
Price: 0.35p
12 month high/low:  1.53p/0.28p
Market cap: £3.3m

 

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