Sierra Leone-based mining firm, African Minerals, on Tuesday, said it had insufficient funds to meet the biannual coupon payment of $17 million towards its $400 million convertible bond.

African Minerals, which is the developer, operator and 75 percent owner of the Tonkolili Iron Ore Project in Sierra Leone, said the money is due today. African Minerals said it is unlikely that the $17 million payment will be made in the near future.

Talks are continuing regarding a long term funding solution with Shandong Iron and Steel Group (Shandong), AML’s partner and 25 percent owner of Tonkolili project. The firm also continues to evaluate potential funding solutions with other parties, including but not limited to a partial sale of AML’s stake in the project, it said.

“Reaching that outcome remains AML’s utmost priority and while the board continues to make every effort to advance these discussions, there can be no certainty that agreement will be achieved,” it said.

“In the event that a funding solution is successfully reached, it is highly likely that the outcome would leave little or no value for AML’s shareholders, due to significant balances owed to trade creditors before the project went into care and maintenance, as well as existing bank debt amounting to $276 million and the $400 million convertible bond, all of which sit ahead of AML’s shareholders in the capital structure,” it added.