Glencar Mining extended its losses last year after stepping up exploration activities in Africa. The company, which is particularly active in Mali, posted an operating loss of $745,046 (€581,149) for the year to the end of December, up 7 per cent on 2004.

Expenses climbed by 4 per cent to $725,654 over the same period, while the company reported an exchange loss of $19,422. Hugh McCullough, Glencar chief executive, said the firm had passed through "a very exciting and successful year". He pointed to its "major gold discovery" at Komana West in Mali, where Glencar has a 95 per cent interest.

Mr McCullough said more work was required on Komana and on other targets, but he expressed optimism that the forthcoming season in Mali would advance mining plans.

"Glencar is now in a pivotal position in terms of ground holding and cash reserves to participate fully in the current buoyant gold market," he said.

Cash balances at the company stood at $1.2 million at the end of December, up slightly on the same point a year earlier.

Since the start of 2006, Glencar has raised an additional $2.19 million.

Mr McCullough said the firm, which is listed on both Aim and IEX, was now "well-financed" to fulfil all of its exploration plans.