Gratomic Inc. has reduced monthly expenses in Namibia, Canada, and Brazil by N$2,1 million (US$115,000).
The company owns one of the oldest vein graphite mines, the Aukam Graphite Project, which is close to the port city of Luderitz.
Gratomic is selling certain non-core assets, including a house the company owns in Windhoek.
The proceeds will be used to obtain working capital and complete a technical report on the Aukam Property.
The Gratomic executive chairperson, Bruno Baillavoine, said this would bring in some additional short-term cash that would be better used at the Aukam site.
Baillavoine said selling non-core assets will reduce ongoing running costs, consistent with the company focusing its resources towards achieving commercial goals.
He said Gratomic is also focused on reducing its current debt level.
Many have left the company, including Armando Farhate, Director and COO, Karl Trudeau, and Stephen Woodhead, CFO.
Baillavoine said Gratomic CEO Arno Brand will assume the responsibilities of Farhate as COO.
Woodhead is being replaced by interim CFO Daniel Baard, a current board member and CPA.
According to Baillavoine, reducing management fees and overhead expenses is consistent with the company’s financial strategy.
“We now have a more straightforward, smaller, less costly and thus, more effective new board structure.
“It leaves room for changes required for the proposed admission of the company’s securities to the Alternative Investment Market of the London Stock Exchange,” he said.
The board has thanked Baillavoine by granting him 750,000 stock options at an exercise price of $0.20 and a further 750,000 stock options at an exercise price of $0.30, both exercisable for three years after July 1, 2025, to align his interests more directly with the interest of shareholders.
Arno Brand will provide further short-term financial support to demonstrate his continued confidence in the company’s prospects.
Brand will focus on fundraising, which is essential for a junior exploration company until it becomes a producing mining company, generating revenues and cash flows.
Danie Baard, known by many shareholders as a non-executive director has been appointed the interim CFO.
Baillavoine said: “Gratomic continues to work towards advancing its strategic path. Though progress is never as fast as one wishes, Gratomic continues to make significant steps forward, and critical decisions have taken place.
“We remain confident that we will complete the journey along the strategic path we set for the company.”
