11/03/2008 - 15:58

IMC gives View Resources a $19m lifeline

11/03/2008 - 15:58

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View Resources Ltd major shareholder IMC Resources (Australia) Pty Ltd has thrown a lifeline to the failed gold miner, offering to advance a $19 million loan to View's administrators.

View Resources Ltd major shareholder IMC Resources (Australia) Pty Ltd has thrown a lifeline to the failed gold miner, offering to advance a $19 million loan to View's administrators.

The loan to Ferrier Hodgson administrators Andrew Saker and Darren Weaver, will be used to repay View's outstanding loan to Investec Bank Ltd, and the balance to fund View's capital contribution towards the development of its nickel asset Carnilya Hill, subject to due diligence.

View was placed in voluntary administration early last month, following disappointing production results at its Bronzewing gold mine and a prolonged share price slide

To add to its woes, View's hopes of offloading its 30 per cent stake in Carnilya Hill to joint venture partner Mincor Resources NL were recently dashed, with Mincor Ltd terminating the proposed $25 million deal.

IMC Resources group chief executive Jyn Sim Baker said the loan was designed to provide an opportunity to restructure View.

IMC holds 19 per cent of View.

"We are keen to work with key stakeholders of View to achieve a viable way forward" Ms Baker said.

Ms Baker said IMC may immediately demand repayment of the loan should a satisfactory due diligence or restructuring not be achieved. Any proposed restructure will require the support of View's stakeholders.

Drawdown of the loan will be staggered, with the first drawdown used to repay the Investec loan.

 

 

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