23/04/2012 - 14:33

Kagara stocks in halt ahead of announcement

23/04/2012 - 14:33

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Shares in base metals miner Kagara have entered a trading halt, with the market speculating the struggling company is set to make a funding announcement.

Kagara stocks are due to resume trading by Thursday, pending the release of the announcement.

The company’s shares last traded at an all-time low of 12 cents, after it suspended operations at the Baal Gammon base metals project in Queensland around two weeks ago.

Also, the Queensland state government announced last week it would evaluate the Baal Gammon operation over the potential release of contaminated water from the mine.

Kagara has also suspended operations at its Thalanga and Mungana underground mines and halted all exploration due to a poor outlook for copper and zinc prices.

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 also restructured its operations in March, announcing 130 jobs would be shed from its Perth office and north Queensland operations.

The miner reported a $49 million first-half loss, after lodging a profit of $2.2 million in the previous corresponding period.

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