14/01/2009 - 14:20

Matrix receivers inundated with offers

14/01/2009 - 14:20

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The receivers of Matrix Metals say it has received submissions from over 40 parties looking to buy the company's Queensland copper assets.

Matrix receivers inundated with offers

The receivers of Matrix Metals say it has received submissions from over 40 parties looking to buy the company's Queensland copper assets.

Matrix went into administration in November last year after Glencore International AG, a secured creditor, appointed Gary Doran and John Greig from Deloitte as receivers and managers.

Deloitte Partner Eric Lilford, who has been working with the receivers, said the strong interest in the Matrix assets had continued throughout the Expressions of Interest period.

Indicative offers were due for submission this week.

"We have to date received a pleasing number of submissions of interest in the Matrix assets, and we have now commenced the formal processing of those," Dr Lilford said.

"Expressions of interest have been received from far and wide, including multi national and local parties. The submissions also cover a wide range of reorganisation options, including parties interested in the acquisitions of all, or part of the Company's assets," Mr Doran said.

"The receivers are now working to narrow the interested parties down to a shortlist, and we expect to be in a position to notify the parities this week," Dr Lilford said.

Short-listed parties will be invited to undertake more detailed due diligence, which will include a site visit to the Matrix assets in Queensland.

Matrix's assets include mining pits at Mt Watson and Mt Cuthbert, an operating production facility (9,000 tonnes per annum capacity) at Mt Cuthbert, and exploration tenements covering 3,6000 square kilometres in and around Leichhardt and Cloncurry.

The receivers previously secured funding to continue the partial operation of the Matrix Metals assets at Clonclurry, and are continuing to generate cashflow from sales of cathode copper derived from the heap leach.

Dr Lilford, a qualified mining engineer, said the high level of interest in Matrix demonstrates that there are buyers out there for good assets, and some good buying opportunities in the current market.

 

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