March 1 (Reuters) - Shares of Shore Gold Inc tumbled nearly 50 percent on Thursday after the Canadian miner failed to seal a financing deal for its Star-Orion South Diamond project in Saskatchewan.

The company said it was at an advanced stage of negotiation for funding the development of the diamond mine, but could not conclude the deal due to "current world economic uncertainties."

To save cash, Shore Gold said it has postponed the setting up of electrical power supply to the project until the funds for the project are secured.

It also cut its headcount by seven and its board to five members from eight and eliminated some management positions, including that of the chief operating officer.

Its 15-member staff will now focus on completing environmental approval and project permitting and pursue financing, the company said.

Shore Gold shares were down 38 percent at 25 Canadian cents per share on Thursday morning on the Toronto Stock Exchange.

They had touched a low of 20.5 Canadian cents earlier in the session. The stock was the biggest percentage loser and was one of the most heavily traded. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Sreejiraj Eluvangal)