11/07/2008 - 11:28

Humann quits Territory, India boards

11/07/2008 - 11:28

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Monarch Gold Mining Company Ltd deputy chairman David Humann has stepped down from the boards of Territory Resources Ltd's and India Resources Ltd, a day after the gold company went into administration.

Monarch Gold Mining Company Ltd deputy chairman David Humann has stepped down from the boards of Territory Resources Ltd's and India Resources Ltd, a day after the gold company went into administration.

In brief statements to the market, both India and Territory advised that both were looking for suitable replacements and did not give reasons for Mr Humann's departure.

Mr Humann's resignation follows Michael Kiernan's move last month when he resigned from the boards of India, Territory and Maltilda Minerals Ltd to focus on Monarch.

Today's announcements follow the collapse of Monarch yesterday when administrators from Pitch Partners were appointed.

Monarch's troubles were triggered last month by the continued underperformance of its Davyhurst gold mine and were forced to suspend operations.

India and Territory said today that both would vigorously pursue outstanding loans from Monarch, with India owed $3.5 million and Territory owed about $18 million.

It has been reported that Monarch was forced to appoint administrators due to a break down in negotiations over a repayment details regarding Territory's loan.

Today Territory said it was in the final stages of completing the documentation of an agreement for the repayment of the loan plus an enhancement of the security that was to form part of the capital restructuring proposal recently announced to the market by Monarch.

"Territory is disappointed to note, as a creditor and as a major shareholder, that an administrator has been appointed given the detailed negotiations and capital restructuring plan," the company said in the statement.

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