Amani in January this year announced that it had received a commitment for Neo Gold for the placement of one-billion fully paid ordinary shares, at the price of 0.3c each, to raise A$3-million.

Despite the transaction being approved on March 25, Neo failed to complete the share placement or to pay the A$3-million, breaching its contractual obligation.

The Neo funds had been earmarked to advance the Giro gold project, in the Democratic Republic of Congo, including funding diamond core and reverse circulation drilling, as well as regional exploration and a resource estimate upgrade for the Kebigada deposit, as well as for mining studies.

Amani told shareholders on Thursday that the company was seeking immediate alternative funding.