TORONTO (CP) -- Chariot's chief executive officer and president Ulli Rath tried to calm investors by assuring them that "the company is in sound financial shape and the development of the Mina Justa copper project is proceeding as planned, despite the challenges posed by the markets."
Mina Justa is on the Marcona copper property in Peru. Chariot owns 70% of the property which, the company says, is close to roads, power, water and a port for exporting its output.
Rath acknowledged that completion of a project feasibility study, a necessary step in getting financing for any major mining project, has been delayed but said the study would be done in the fourth quarter.
Chariot also said it more than $22-million cash, and has taken measures to conserve its spending.
Rath said the top three priorities for Chariot are to complete the feasibility study, complete an environment and social impact study, and review its strategic alternatives once the feasibility study is complete.
"The board and I are confident that Chariot has sufficient cash resources on hand to accomplish these three critical objectives," Rath said in a statement.
However, Chariot fell as low as 17.5 cents on the Toronto Stock Exchange, a drop of about 25%, before midday. It was the lowest price for the stock in at least five years.
The stock's 52-week high is $1.32, established about a year ago.
(c) The Canadian Press