London - Iron ore miner London Mining said it was in a pricing dispute with Glencore related to an offtake agreement and was considering its options including termination of the contract.
Shares in London Mining fell nearly 13 percent to an all-time low of 22.77 pence on the London Stock Exchange on Monday morning.
Blue-chip miner Glencore's shares were down 2.7 percent by 09:44 SA time, after touching their lowest in more than three months in early trading.
The shares recovered some of the losses later.
London Mining said the dispute was about a cash prepayment amount, which Swiss-based miner and commodities trader Glencore refused to pay.
Glencore declined to comment on the matter.
Offtake agreements are contracts that commit future production for cash.
London Mining, whose only operating mine is in Sierra Leone, said it was in talks with its core lender for short-term replacement liquidity.
The miner also said it had received interest from a number of parties to reallocate uncommitted offtake and provide further funding to the company in the event that the dispute with Glencore could not be resolved.
The company also said it had agreed a $30 million (R334 million) revolving, 2-year pre-export financing facility with Afreximbank that required approval from its existing lenders. - Reuters