28/06/2013 - 14:39

Kagara offloads last assets

28/06/2013 - 14:39

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Kagara offloads last assets

Administrators for collapsed miner Kagara have sold off the company’s remaining Queensland assets in two deals worth more than $71 million.

In the larger of the two deals, the purchaser, privately-held firm Lucky Metals, will acquire Kagara subsidiary Mungana and other assets relating to the Northern Chillagoe project in northern Queensland for $50 million, plus a deferred cash or share component worth up to $8.197 million.

Lucky Metals will also take up $1.4 million of environmental bonds.

King & Wood Mallesons acted as Kagara’s legal adviser for the Mungana transaction.

The second deal will see the assets of Kagara Copper, the Thalanga and Liontown/Waterloo projects in Southen Queensland, sold to Lucky Metals for $11 million in cash plus a deferred cash or share component worth $1.803 million.

The purchaser will assume around $9.1 million of environmental bonds.

FTI Consulting’s Michael Ryan said the administrators were pleased to have sorted the sale of Kagara’s northern and southern region projects.

“This transaction is a positive step in maximising the value which can be returned to creditors,” mr Ryan said.

“The administrators will continue to work towards the successful completion of this sale and to explore all opportunities for a restructuring of the group.”

Kagara’s central Queensland assets sold earlier this year for $40 million. The company was placed into administration in April last year. 

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