True Gold down 25% after Burkina Faso protests, damage
True Gold Mining (CVE:TGM) tanked in Wednesday afternoon trade, after the company announced its halting operations at its Karma Gold Project in Burkina Faso after demonstrations.
The company said in a statement there was some damage to its property and assets which it is "currently assessing for significance and potential impacts to project schedule."
True Gold said it the decision "as a precautionary measure in the interests of employee safety and project security and to allow the communities and authorities to engage with the demonstrators."
By the close the Vancouver-based junior was trading at $0.205, down 25.4% on the Toronto Venture Exchange. More than 1.8 million shares in the $81.7 million company changed hands on the day – four times the usual volume.
The counter is down 54% over the past six months as positive drilling results and economic assessments at the Karma project is overtaken by political events in the West African nation.
The Karma gold mine which is being built at a cost of $130 million to produce 97,000 ounces per annum was slated for completion by the end of this year.
Burkina Faso's longtime president Blaise Compaore was ousted in a popular uprising in October after 27 years in charge of the country of 18 million, one of the poorest in the world.
Burkina Faso is the continent's fourth largest gold producer after Mali and has commissioned eight new mines over the past six years. Another Vancouver company active in the country is B2Gold (TSE:BTO)