Monarch appoints administrators

Despite announcing a $30 million lifeline package earlier this week, Monarch Gold Mining Company Ltd has today appointed Pitcher Partners as voluntary administrators.

In a brief announcement this afternoon, Monarch said that it had no alternative but to appoint Bryan Hughes and Christopher Munday of Pitcher Partners as voluntary administrators to the company and its 12 subsidiaries.

This week Monarch managing director Michael Kiernan outlined a $30 million rescue package which included the Kiernan family providing a $15 million interest free loan.

Additionally, Monarch this week came to an agreement with South African miner Harmony Gold over the cash element in the sale of Harmony's Mount Magnet operations, but left the overall price unchanged at $65 million.

The cash requirement had been reduced to $15 million from $30 million.

Monarch's woes were triggered when it was forced to suspend operations last month at its Davyhurst gold mine due to continued underpeformance.

Monarch owes shareholder Territory Resources Ltd $18 million and India Resources Ltd $3.5 million.