08/07/2013 - 11:49

Lucky Metals fails to produce Kagara cash

08/07/2013 - 11:49

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Lucky Metals fails to produce Kagara cash

Kagara Mining’s distressed asset firesale has hit a speed bump, with the purchaser of the collapsed base metals miner’s remaining Queensland mines missing a deadline to pay $6 million worth of deposits due under the sale agreements.

Administrators at FTI Consulting said despite the missed deadlines, Kagara remained in ongoing negotiations with the purchaser, privately held firm Lucky Metals.

Lucky Metals had agreed last month to buy the Northern Chillagoe project in northern Queensland, which is owned by Kagara subsidiary Mungana Goldmines, for $50 million plus a deferred cash or share component worth up to $8.2 million.

Mungana said today, however, that a $4.9 million deposit payable under the sale agreement had not yet been received.

“Mungana is currently considering the best course of action to deal with the non-performance against the sale agreement,” the company said in a statement.

Lucky Metals also entered in a separate agreement to purchase Kagara Copper and its Thalanga and Liontown/Waterloo projects in southern Queensland, for a cash and share package worth $12.8 million.

Kagara said today a $1.1 million deposit had also not been paid for the southern Queensland projects, but discussions with Lucky Metals were continuing.

Kagara said it would update the market once those negotiations were finalised. 

 

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