Saskatoon based Shore Gold saw its stock prices tumble in trading on Thursday, one day after the company announced it had failed to secure financing for a diamond mine and would be laying off a number of staff.
Stock prices were down over 30 per cent in mid-day trading with over 4-million shares traded.
In a news release, Shore Gold blamed the failure to secure financing for the Star-Orion South Diamond Project on current world economic uncertainties.
The company is laying off seven people, most of those in the technical group.
That will leave the company with the minimum number of staff to continue operating the company.
The layoffs take effect immediately.
As well, the number of company officers is being reduced by three.
Chief Operating Officer Harvey Bay has stepped down immediately, while Chief Financial Officer Duane DeRosier and Vice President Administration Eric Cline will resign at the end of March.
The board of directors is also being reduced from eight to five members.
Shore Gold is also postponing all arrangements with SaskPower for the design and construction of electrical power to the project site until financing is secured and a production decision is made.
The company says the diamond project is still economically feasible and is continuing its efforts to secure financing.
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