The managing director of gold miner Apex Minerals NL (ASX:AXM)...

The managing director of gold miner Apex Minerals NL (ASX:AXM) has admitted that cash is tight, but insists the company is not on the brink of financial collapse now that it is producing more gold.

Mark Ashley has told the Australian Financial Review that the company, which undertook a $109 million rights issue in December, had just $1.2 million in the bank at the end of March, having started the quarter with $18.1 million.

But Mr Ashley says the majority of the funds raised had been used to repay convertible notes, pay out creditors and on capital development.

The rights issue was completed at 4 cents a share and has significantly diluted Apex??s capital base.

The company operates the Wiluna goldmine in Western Australia??s eastern goldfields and has scaled back spending on mine development.

Mr Ashley says the company is considering selling its Youanmi gold project in Western Australia to inject some cash back into the company, which could be used to pay for further exploration at Wiluna. Apex Minerals reported a loss of $133.6 million for the 2009 financial year.
10/05/2010 from finance news network