Winsome Resources Limited (ASX:WR1) has been placed into trading halt and executives of the company have refused to comment on the reason behind this.
The halt, which took effect from the morning of October 22nd, 2019, is a new development and has further raised questions about the future of the company.
Winsome Resources is an Australian publicly listed company having a history of mining and exploration. It is mainly engaged in exploration opportunities in the natural resource sector. The company is focused on projects in Australia, North America and South East Asia.
At present, the company possesses tenements/licenses encompassing a total of 1,515 km2 of mineral exploration acreage. Winsome is participating in several projects, including copper-gold opportunities in North Western Queensland.
The company has been listed on the ASX since 1994 and has previously had trading halts, but none so close in succession as the current halt.
Given the uncertainty surrounding Winsome Resources, analysts are eagerly waiting for an announcement from the company with clarity on the cause of and conditions of the trading halt.
In the past, Winsome has also been associated with vertically integrating from exploration to production and selling its assets to a mid-tier producer in order to generate revenues to meet its working capital needs.
Analysts are also of the opinion that Winsome Resources might tap the debt markets or capital markets in the near future for raising funds, including scheduled payments.
No official comment has been issued by the company in light of the halt, and the decision to remain mum has only added to the uncertainty of the future of the company.
The next few trading sessions would be important in terms of determining the direction in which Winsome Resources will be headed in the near future. Investors need to wait for further clarity from the company and its associated parties and exercise caution when dealing with the stock until then.