20/03/2009 - 14:02

Albidon on administration edge

20/03/2009 - 14:02

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The chairman of embattled nickel miner Albidon has warned the company may have to call in administrators on Monday if approval for a much needed funding deal does not come through.

Albidon on administration edge

The chairman of embattled nickel miner Albidon has warned the company may have to call in administrators on Monday if approval for a much needed funding deal does not come through.

Shareholders today approved a funding arrangement from stakeholder and offtake partner Jinchuan, which will provide an upfront payment of $US1.8 million, subscribe to $US7 million worth of shares and will participate in a convertible note facility.

However chairman John Shaw said that approval was still needed from senior lenders and unsecured creditors, who have until midnight on Monday to approve the funding arrangements.

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

The suspension also resulted in the sacking of some 350 employees and contractors and Mr Shaw said today that at the end of this month, only some 60 workers will be left at Munali.

The compares with a peak workforce of around 1,200 during construction.

Shares in Albidon slumped 1.2 cents or 24.5 per cent to close at 3.7 cents today.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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