30/04/2012 - 09:38

Kagara appoints administrators

30/04/2012 - 09:38

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Embattled miner Kagara has called in administrators from Taylor Woodings after making no progress on restructuring its financing arrangements over the past week.  

Taylor Woodings’ Michael Ryan said the voluntary administration would give the company “breathing space and protections” to determine the future of the company independently.

Mr Ryan was appointed administrator alongside colleagues Mark Englebert, Stefan Dopking and Quentin Olde.

Kagara has a portfolio of high-quality, sought after assets including strategic mines, processing operations and exploration projects in Queensland and Western Australia,” Mr Ryan said in a statement.

“As administrators, we will work closely with the management team to identify all potential options and opportunities available to Kagara, including options relating to a potential re-capitalisation of the company. “

The first creditors meeting will be held within eight business days.

Shares in the struggling Perth-based miner were placed in a halt on Monday last week, ahead of an announcement regarding a restructure of its financial arrangements.

Kagara was trading at an all-time low of 12 cents, following the decision to put its Baal Gammon base metals operation in Queensland into care and maintenance early this month.

It suspended its shares from official quotation on Thursday, after shutting down work at its last operating mine, the Balcooma base metals project in Queensland, two days earlier.

It has also suspended operations at its Thalanga and its developing Mungana underground mines and has halted exploration until market conditions improve.

The company launched a comprehensive restructure of operations in March, shedding 130 jobs from its Perth office and North Queensland operations.

The company exited nickel mining in February, when it sold its Lounge Lizard operation to Western Areas for $68 million, less than half its initial asking price of close to $200 million.

Kagara reported a $49 million first-half loss, after lodging profit of $2.2 million over the previous corresponding half year. 

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