17/12/2012 - 14:45

Administrators sell more Kagara assets

17/12/2012 - 14:45

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Administrators for collapsed nickel miner Kagara have reached agreement to sell off the group’s North Queensland assets for $40 million.

Taylor Woodings announced today that Hong Kong-based Snow Peak Mining, a company associated with the UK’s Consolidated Tin Mines, had agreed to buy the assets and had paid a $4 million deposit.

Kagara’s assets include the resources and processing plant at Mt Garnet, the Balcooma and Baal Gammon mining areas and the Einasleigh and Maitland exploration projects.

“The administrators are pleased to formally agree the sale of the group’s central region projects and wish to thank the Kagara staff, a number of whom are expected to be offered employment by the purchaser, for their assistance through this part of the process,” Taylor Woodings’ Michael Ryan said.

“Following the recent announcement of the executive of a binding heads of agreement with Mungana Goldmines to terminate the gold rights agreement between the companies, this transaction is another positive step that may facilitate the restructuring of the group, or assist in maximising the value which can be returned to creditors.”

Completion of the transaction remains subject to FIRB Approval.

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