24/03/2009 - 08:57

Albidon in last ditch effort over funds

24/03/2009 - 08:57

Bookmark

Save articles for future reference.

Albidon shares have been placed in a trading halt as it scrambles to secure final funding approval from senior lenders and unsecured creditors or be placed in voluntary administration.

Albidon in last ditch effort over funds

Albidon shares have been placed in a trading halt as it scrambles to secure final funding approval from senior lenders and unsecured creditors or be placed in voluntary administration.

Shareholders last week approved the badly needed cash injection from stakeholder and offtake partner Jinchaun, which will provide an upfront payment of $US1.8 million, subscribe to $US7 million worth of shares and participate in a convertible note facility.

However final approval was still needed from senior lenders and creditors, with chairman John Shaw last week warning the company could be placed into administration if approval was not received.

"We ask that the trading halt be in place until conclusion of the Company's funding arrangements," Albidon said.

"If this is not achieved on a timely basis, then the Company and its subsidiaries will be placed in voluntary administration."

Shares in Albidon last traded at 3.9 cents.

Earlier this month, Albidon placed its Munali nickel operation on care and maintenance, some seven months after production first started.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options